Aave is creating net positive utility for the ve-based protocol ecosystem by enabling the option of allowing LP positions to be leveraged as collateral while earning increased yield.
This proposal also provides a significant upside for Aave through the revenue from staking rewards.
At StableNode we are glad to see this partnership reach an innovative and revenue bearing stage, as delegates in both Aave and Balancer this overlap in value creation is quite pleasing and a signal that we are headed in the right direction.
However considering Aave’s Balancer holdings, how does Aave plan to offer a competitive yield on the Native Balancer BPT without diluting the APR on Aave Liquidity Pools?