Adding Uniswap v3 NFTs as collateral

Hello everyone,

This proposal as for goal to introduce a new category of assets to Aave: Uniswap v3 NFTs.
The time for DeFi protocols interoperability has come.
Since Uniswap v3 NFTs represents a position made of 2 assets in a liquidity pool, why not use them as collateral ? Of course, this would be limited to Aave-approved-tokens Uniswap v3 pools, such as ETH / DAI, WBTC / ETH etc.
This would allow users to borrow an asset against 2 assets with the collateral adjusted dynamically. Thus, users would be able to manage their positions in an easier manner, while still beeing exposed to a Uniswap v3 position.

Liquidators could also profit from this proposal, by liquidating Uniswap v3 NFTs, they would get extra tokens via the fees generated by the Uniswap position.

I will be happy to read your toughts on the subject


Hello mango, and thx for your post,

With current Aave architecture, it would be hard to implement uniswap NFT as collateral on Aave (as they’re by definition “non-fungible”)

That being said, ERC-20 representing uni V3 positions such as G-UNI tokens from Arrakis protocol make sense.

I’m personally more in favor of Balancer & Curve LP positions as collateral for strategic reasons but G-UNI tokens might have an interest.

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@mango @MarcZeller
A proposal to use UniswapV3 NFT has already been submitted. I myself find this idea very interesting and think it has the potential to grow Aave significantly. Please give us feedback on these ARCs.