# \[ARFC\] Treasury Management - Avalanche v2 to v3 Migration **URL:** \ **Category:** Governance\ **Created:** [August 13, 2023, 7:11pm UTC](https://governance.aave.com/t/arfc-treasury-management-avalanche-v2-to-v3-migration/14469 "2023-08-13T19:11:17Z")\ **Posts on this page:** 7\ **Page:** 1
**Author:** ![TokenLogic](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/tokenlogic/32/8248_2.png) [@TokenLogic](https://governance.aave.com/u/TokenLogic)\ **Post date:** [August 13, 2023, 7:11pm UTC](https://governance.aave.com/t/arfc-treasury-management-avalanche-v2-to-v3-migration/14469/1 "2023-08-13T19:11:17Z")
* * * title: [ARFC] Treasury Management - Avalanche v2 to v3 Migration author: @TokenLogic created: 2023-08-13 * * * # Summary This publication proposes redeeming all Aave DAO funds on Aave v2 Avalanche and depositing the underlying assets into Aave v3 Avalanche. # Motivation This publications progresses the [[TEMP CHECK] proposal](https://snapshot.org/#/aave.eth/proposal/0x0be8229173181fe0aaf5ed1883e53752546efb810e55610e7ac8b991155ab788) to migrate Aave DAO’s funds from Avalanche v2 to v3. Aave DAO currently holds around $4.58M on Avalanche v2. The publication supports redeeming the assets shown below from v2 Avalanche and deposit them in v3 Avalanche. ![Screenshot 2023-08-13 at 20.07.09](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/8/89de73ba2b8031e4160ad35b2abd56b0cbd0cf9c.png) The deposit rates on v3 are great than v2 and there is also wAVAX incentives being distributed across v3. If required, this proposal is to be implemented via multiple AIPs to ensure there is sufficient Supply Cap capacity to enable funds to be deposited into v3. Do note, the borrow rate on v2 will increase in response to migrating funds from v2. Transferring the DAOs funds from v2 to v3 can be performed via the migration tool developed by @bgdlabs. There are also smaller holdings, example: wAVAX, that can be deposited to earn yield. This proposal will result in ~8.3% of the TVL on v2 being migrated to v3. For reference, the Aave Avalanche v2 Treasury: [`0x5ba7fd868c40c16f7aDfAe6CF87121E13FC2F7a0`](https://snowtrace.io/address/0x5ba7fd868c40c16f7aDfAe6CF87121E13FC2F7a0) # Specification Perform the following: - Transfer funds from v2 to v3 via migration tool (can be one or several AIPs, subj. Supply Cap restrictions) - Deposit passively held assets into v3 # Disclaimer TokenLogic receives no payment from Aave DAO or any external source for the creation of this proposal. TokenLogic is a delegate within the Aave ecosystem. # Copyright Copyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/). ---
**Author:** ![oneski22](https://avatars.discourse-cdn.com/v4/letter/o/65b543/32.png) [@oneski22](https://governance.aave.com/u/oneski22)\ **Post date:** [August 13, 2023, 11:51pm UTC](https://governance.aave.com/t/arfc-treasury-management-avalanche-v2-to-v3-migration/14469/2 "2023-08-13T23:51:42Z")
Is it worth also bundling transactions to claim wAVAX LM rewards into this action, IIRC they are sitting at ~16k USD ---
**Author:** ![craiglr.eth](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/craiglr.eth/32/2146_2.png) [@craiglr.eth](https://governance.aave.com/u/craiglr.eth)\ **Post date:** [August 15, 2023, 10:39am UTC](https://governance.aave.com/t/arfc-treasury-management-avalanche-v2-to-v3-migration/14469/3 "2023-08-15T10:39:58Z")
The principle of migrating reserves from v2 to v3 makes perfect sense it is not possible to execute this ARFC as currently written. There is insufficient available liquidity in v2 to fully withdraw the USDC and DAI reserves. Aave Avalanche v2 has the following available liquidity: USDC: $1.81m (81% utilisation) DAI: $898k (79% utilisation) While Aave v2 POL reserves are: USDC: $2.04m DAI: $1.63m Migrating USDT reserves will increase utilisation from 68% currently to 84%. I’ll leave it up to the risk stewards to comment on this, but that level as is looks ok to me. Instead, I propose to change this proposal to fully migrate USDT (as long as utilisation does not materially increase), AVAX, WBTC and WETH. Given that USDC and DAI are both approximately at u\_opt these should remain in v2 and wait for utilisation to decrease before migrating to v3. Deposit rates on both are higher in v2 than v3 currently anyway so there is no financial opportunity cost. ---
**Author:** ![TokenLogic](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/tokenlogic/32/8248_2.png) [@TokenLogic](https://governance.aave.com/u/TokenLogic)\ **Post date:** [August 15, 2023, 8:00pm UTC](https://governance.aave.com/t/arfc-treasury-management-avalanche-v2-to-v3-migration/14469/4 "2023-08-15T20:00:26Z")
Hi @craiglr.eth, As the utilisation of v2 and v3 reserves is dynamic, it makes sense to migrate those funds where it is practical to do so. As a result, it is reasonable to present several AIPs as required to complete the migration. Our preference is to keep the community informed of what is being migrated with each AIP submission and in doing so, we will be working closely with Chaos Labs to ensure no risks are overlooked. Thank you kindly for commenting on the proposal. Hi @oneski22, Great catch. We will include this in the proposal. Thank you for flagging this. ---
**Author:** ![TokenLogic](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/tokenlogic/32/8248_2.png) [@TokenLogic](https://governance.aave.com/u/TokenLogic)\ **Post date:** [August 28, 2023, 8:28am UTC](https://governance.aave.com/t/arfc-treasury-management-avalanche-v2-to-v3-migration/14469/5 "2023-08-28T08:28:25Z")
Hi Everyone, We have created a Snapshot vote for this proposal. [https://snapshot.org/#/aave.eth/proposal/0xfe17ba406d90f8308794d14e8cad4f8d44c1f74e5589a5a106f9af17df916a59](https://snapshot.org/#/aave.eth/proposal/0xfe17ba406d90f8308794d14e8cad4f8d44c1f74e5589a5a106f9af17df916a59) Thank you in advance for your participation. ---
**Author:** ![TokenLogic](https://dub1.discourse-cdn.com/flex013/user_avatar/governance.aave.com/tokenlogic/32/8248_2.png) [@TokenLogic](https://governance.aave.com/u/TokenLogic)\ **Post date:** [September 3, 2023, 7:56am UTC](https://governance.aave.com/t/arfc-treasury-management-avalanche-v2-to-v3-migration/14469/6 "2023-09-03T07:56:39Z")
Hi Everyone, This proposal has Passed the Snapshot vote. We will begin preparing the payload fos submission to the Aave Guardians to implement. ---
**Author:** ![system](https://europe1.discourse-cdn.com/flex013/uploads/aave/original/2X/e/e11637c36f45ffa158f2146f5c19438d46e0824d.svg) [@system](https://governance.aave.com/u/system)\ **Post date:** [October 18, 2023, 3:34pm UTC](https://governance.aave.com/t/arfc-treasury-management-avalanche-v2-to-v3-migration/14469/8 "2023-10-18T15:34:58Z")
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