Aave Labs just fired the starting gun on one of DeFi’s most ambitious integrations yet. A new proposal to the Uniswap DAO would allow users to borrow GHO — Aave’s native stablecoin — using their Uniswap V4 LP positions as collateral. It’s a DeFi power-play designed to finally make LP capital work double-time: earning fees and enabling borrowing.
How does it work? Aave’s Position Manager (a part of upcoming Aave V4) will assess risk, verify collateral, and enforce borrowing limits based on LP holdings. At the same time, Uniswap V4’s Hooks architecture allows seamless interaction with external smart contracts — making the integration technically feasible without compromising user experience or decentralization.
Here’s what makes this proposal especially notable: it’s DAO-to-DAO. If passed, Uniswap DAO will earn 50% of GHO borrowing profits generated via its own LPs. That’s protocol-aligned incentives in action — a shift from siloed DeFi products to collaborative financial architecture.
Aave Labs will finalize development and deploy post-vote. The goal? Supercharge capital efficiency and make liquidity truly portable across DeFi.
So #AMAGE community: is this the blueprint for future DeFi growth — or the beginning of a new war for protocol dominance?
