Collateral Swaps & Paying Loans with Other Tokens

A couple ideas I’d like to throw out:

  1. The ability to swap collateral within Aave protocol.
  • Think: Uniswap for collateral within Aave

  • Use case:

a) You deposit $ETH as collateral - $ETH starts dumping - you swap to $DAI to preserve value

or

b) You deposit $DAI as collateral - $ETH starts pumping - you swap to $ETH for collateral gains

** Maybe it could be done using Metamask, now that they have enabled swaps?

  1. The ability to pay off loans with a different token to that which was borrowed

  2. The ability to pay off loan with collateral - either same token as borrowed or other

Would love to hear some feedback on these from you guys.

Have these ideas already been considered and dismissed for some reason?

I’ve not gone too deep into considering arbitrage opportunities or problems in supply/demand that may arise if implemented, so please do point these out to me in the comments.

Cheers!

Shane

@stani @Emilio - your thoughts?

@defidude - would love to hear your thoughts on these

¡OJO! a los intercambios con Metamask, los fees son carísimos y algo ocurre con esta funcionalidad. Se están reportando casos de costes de 3.000$ por pequeños intercambios.

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Metamask necesita integrar soluciones de segunda capa como XDAI Chain

I think it’s a great idea and an important feature too.

I don’t think it’d be possible to be done using MetaMask as mentioned only because the funds are in Aave’s contracts so there would be no way for MetaMask to really make that swap without you withdrawing first. MetaMask’s swap feature is essentially a DEX aggregator (DEXAG, 1inch, etc.) built in, so doesn’t bring new possibilities per say mostly just convenience.

All of that said, collateral swapping/trading is planned to be supported in Aave V2, which is explained more in this blog post here: https://medium.com/aave/aave-v2-the-seamless-finance-d52075d97a70

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cheers for the link - much appreciated!

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Wow! That article about V2 has got me pretty excited for the future of Aave - thanks again!

I guess this will also solve something else I was wondering about: the ability to migrate LEND that is currently being used as collateral to Aave, without having to withdraw first

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V2 looks great today! Is there a timeline for when we will be able to migrate existing V1 deposits/loans to V2 so we can take advantage of the collateral swaps?

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@stani tweeted the migration script will be available in a couple of weeks

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Just need more liquidity on the v2 protocol to do it! soon it will be possible!

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