Migrating your v1 position to v2
Having waited patiently for Alchemix v2 we’re now supporting the migration of your funds from v1 into v2 via a handy tool built into the site. This is aimed to be the easiest and most economical way to migrate your position.
Please note that a true 1:1 migration of your position is not possible, in effect your position must be unwound from v1 and rebuilt into v2. The good news is that we’re offering a special tool that will leverage your funds via a flashloan in order to allow you to get very close to your current v1 position.
v2 will offer the best yields repaying back your loan quicker
Alchemix offers competitive yields compared to other protocols by utilizing its unique boosted yield system. The boosted yield is generated by funds held in the transmuter.
Over the next 6 weeks we will be migrating transmuter funds from v1 to v2.
This schedule will shift the boosted yields from v1 to v2 in tandem with the migration.
Yields will gradually improve in v2 and decrease in v1 over the migration schedule as shown above.
In reality transmuter funds will be moved in chunks, illustrated more accurately by the chart below.
Using the online tool vs migrating manually
Whilst it’s perfectly possible to migrate your position manually simply by liquidating your v1 position, withdrawing your funds and then creating a new position in v2, we have built a gas efficient tool that does all the work you whilst allowing you the option to leverage your new deposit plus any additional funds (excess Dai) that you have available.
Please note: if you have no desire to leverage your new deposit then there is no benefit in using the migration tool.
How to migrate using the tool
If you own a v1 position you’ll be presented with the migration tool on the vaults page.
The migration tool will know what v1 positions you have and show the relevant action buttons to assist with your migration.
Migration tool as presented in the v2 vaults page
In order to begin migrating your position from v1 to v2 simply click the relevant button as shown above to select either your legacy alUSD or alETH loan to migrate.
This will begin the process of migration, starting with liquidation of your funds in v1.
Step 1. Accept the transaction along with an approval (if necessary).
Step 2. Next the tool will withdraw the funds following your acceptance of the following transaction.
Shows the withdrawing process taking place in step 2
Step 3. The tool will allow you to flashloan into v2. By default the tool is configured to take the balance from the withdrawal in Step2, combine with a flashloan of 0.95x and deposit it into Alchemix v2. See below for an overview of how the flashloan works.
Migration tool dialog
Flashloan process
- Take an Aave flashloan up to 0.95x Dai of the withdrawn balance from Step 2
- Deposit the flashloan amount + withdrawn amount from Step2 into Alchemix v2
- Take out an alUSD loan of the same amount as the Aave flashloan
- Convert from alUSD to Dai
- Repay the Aave flashloan with the Dai
If you’d like to leverage less than the default amount please click the custom settings toggle.
This will allow you to specify how much of the available Dai you have in your connected wallet to deposit into Alchemix v2. Note, you may have additional Dai in your wallet that you’d like to leverage and you can include this when inputting your desired amount.
You can also specify how much you’d like to leverage your deposit using the slider below the input field.
Security first:
Alchemix takes user protection seriously. Part of the v2 launch parameters entails limiting debt caps of position sizes. This will affect some users’ ability to migrate in the early stages of the overall migration schedule.
Please note if your position exceeds the current debt cap of the migration schedule then the action button pertaining to your migration will be visible but temporarily disabled until enough transmuter funds have been migrated to support your migration.
Multi-step transactions
The transaction to migrate your funds combines several Alchemix functions into one. Your web3 wallet will lead you through all the transactions. It is important to note that once you have begun the process which involves multiple transactions in sequence, do not leave the page or change wallets, as it could cause UI issues that could prevent the migration process from completing.
Depending on the approvals you’ve already made when using Alchemix v1 the amount of approvals you’re asked to confirm will vary.
We hope the tool allows you to seamlessly move your position into v2 so you can enjoy the benefits of Alchemix v2.
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