$AAVE
Aave teams up with Uniswap to make moves, can LP positions be used as collateral to borrow GHO?
Today there's an epic proposal—Aave Labs is actually going to have deep integration with Uniswap V4! In simple terms: your Uniswap LP positions can soon be used as collateral to directly borrow the GHO stablecoin! This operation takes the composability of DeFi to a whole new level, and even AAVE and UNI are seeing a boost!
How explosive is this proposal?
1. LP positions become "ATMs", borrow GHO at 0.39% interest!
In the future, the liquidity you provide on Uniswap V4 (like the ETH/USDC pool) can be directly collateralized on Aave V4 to borrow GHO at an interest rate as low as 0.39%! Compared to other platforms that often have borrowing rates of 5% or more, this is simply a celebration for arbitrageurs!
◦ Bonus Play: The borrowed GHO can also be staked in Aave's stablecoin pool to earn interest, or used for mining on Uniswap, earning both interest differentials and fees—definitely a “DeFi perpetual motion machine”! (Of course, be mindful of liquidation risks)
2. Revenue split 50-50, Uniswap DAO earns passively!
Aave will directly give 50% of the GHO borrowing interest to the Uniswap DAO, meaning Uniswap doesn't have to do anything and can earn rent just by having LP collateral! With the current circulation of GHO over 200 million, this could potentially bring Uni holders an annual income in the tens of millions of dollars!
3. 3.3 million UNI development fund + 2.4 million UNI incentives
The proposal also requests 3.3 million UNI (approximately 3.3 million USD) for development, auditing, and promotion, with an additional 2.4 million UNI as performance rewards—like unlocking when user targets are met, this is real money being invested into the ecosystem!