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

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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.