I believe there is an opportunity for AAVE to incorporate BPT tokens received by AAVE/ETH LPs in Balancer into the collateral offering. Of course BPT can be staked in the SM, but just as is the case with the AAVE token, I believe another use case for it would be to serve as collateral.
Now the tough question is whether this is technically feasible and I would like to gather feedback from AAVE genesis team and the community as a whole regarding this aspect. I can only assume that the process/design is not very dissimilar to the Uniswap market collateral.
Besides the technical aspect it is appropriate to at least offer the community a poll to express their attitude towards such listing as presented below:
- Add BPT as collateral - YES
- Add BPT as collateral - NO