Proposal: Add BPT as collateral in AAVE V2

Dear all,
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:

BPT listing as collateral
  • Add BPT as collateral - YES
  • Add BPT as collateral - NO

0 voters

1 Like

Hey @depressedape !

The main goals for the 80/20 BPT are to increase liquidity for $AAVE token on decentralized exchanges and stake into the safety module to protect Aave.

However, as the possibility to create a market where we can use StkAave as a collateral was mentioned before, we could also consider to use StkBPT as a collateral in the same market ?

I think it would suit best to have a specific market with BPT shares, along the way of the uniswap V1 market that was initially instantiated with Aave V1.