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title: [ARFC] Migrate Holdings from v2 to v3 and acquire wstETH and rETH author: @llamaxyz - @TokenLogic created: 2023-05-13

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Summary

This publication proposes migrating assets from Aave v2 to v3 on Ethereum and acquiring wstETH and rETH.

Abstract

After ensuring there is sufficient aUSDC to fund Service Providers, this publication Part 2 of 3, involves redeeming v2 aTokens and depositing the underlying assets in Aave v3.

In addition, ETH & wETH is to be used for acquiring wstETH and rETH. This is intended to boost the productivity of Aave’s assets and provide potential flexibility for potential GHO liquidity positions.

Motivation

The following considerations have been accommodated:

• v2 aUSDT required for Signma Prime’s and ACI’s streaming contracts.
• v2 aUSDC required for Service Providers streaming contracts.
• wETH required for B-80BAL-20WETH (326.3 wETH).
• BAL required for B-80BAL-20WETH.
• CRV required for sdCRV.
• Exclude Assets not listed on Aave v3.
• Exclude wETH to be converted to wstETH (800 wETH).
• Exclude wETH to be converted to rETH (800 wETH).

Swapping wETH or ETH to wstETH incurs minimal slippage at the proposed size via Cowswap. However, when wETH is swapped to rETH slippage is >1% at size.

Llama will optimise for maximising Aave return. In doing so swaps and direct deposits into the respective protocol, Lido and/or Rocket Pool, will be considered.

Given the amount of time that has passed since the original proposal, Aave’s ETH nominated asset holding has grown. Aave v2 generates around 30 wETH per week from the v2 deployment alone. Aave holds around 158.2 wETH in Aave v3.

This publication will deposit aroud 140.23. wETH in Aave v3, retain 326.3 wETH in Aave v2 to be used for B-80BAL-20WETH and will acquire 800 wETH/ETH worth of wstETH and rETH.

Specification

The following asset holdings are to be redeemed and then deposited into Aave v3:

Network	Instance	Token	Quantity	Value (USD)
Ethereum	Aave V2	aWETH	140.23	$253,583.97
Ethereum	Aave V2	aUSDT	3,118,628.205732	$3,118,628.21
Ethereum	Aave V2	aDAI	2,886,990.54471515	$2,886,990.54
Ethereum	Paraswap Fee Claimer Permissionless Claimer	WBTC	0.13643753	$3,783.76
Ethereum	Aave V2	aSNX	102,463.44	$211,924.58
Ethereum	Aave V2	aWBTC	6.96	$187,803.46
Ethereum	Aave V2	aLINK	13,530.76	$89,885.42
Ethereum	Paraswap Fee Claimer Short Executor	WBTC	0.49	$13,041.90
Ethereum	Aave V1	DAI	12,291.12	$12,321.30
Ethereum	Paraswap Fee Claimer Short Executor	DAI	4,942.75	$4,943.42
Ethereum	Paraswap Fee Claimer Permissionless Claimer	DAI	2971.111547	$2,971.11
Ethereum	Paraswap Fee Claimer Short Executor	LINK	358.54	$2,376.46
Ethereum	Aave V1	WBTC	0.09	$2,373.55
Ethereum	Paraswap Fee Claimer Permissionless Claimer	LINK	194.2036084	$1,279.04
Ethereum	Aave V1	LINK	142.02	$943.41
Ethereum	Paraswap Fee Claimer Permissionless Claimer	USDT	772.506631	$773.27
Ethereum	Paraswap Fee Claimer Short Executor	USDT	134.79	$134.88
Ethereum	Paraswap Fee Claimer Permissionless Claimer	SNX	23.66422798	$50.96
Ethereum	Aave V1	SNX	22.17	$45.85
Ethereum	Paraswap Fee Claimer Short Executor	SNX	19.84	$41.22
				$6,793,896.30

Approximately 140.23 wETH, is to be deposited into Aave v3 for aethWETH.

800wETH is to be converted to wstETH. 800 wETH is to be converted to rETH.

Network	Instance	Token	Quantity	Value (USD)
Ethereum	Aave V2	aWETH	1,098.55	$1,986,550.08
Ethereum	Aave V2	ETH	418.18	$756,215.10
Ethereum	Aave V1	WETH	41.25	$74,592.80
Ethereum	Paraswap Fee Claimer Short Executor	WETH	31.21	$56,441.38
Ethereum	Paraswap Fee Claimer Permissionless Claimer	WETH	10.81	$19,999.24

Detailed execution details will be provided in the comments prior to submitting the AIP. This will enable Llama and Bored Ghost Developing to optimise the execution methodology.

Copyright

Copyright and related rights waived via CC0.