The Potential of Aave V4

[Marcus-Balancer]

@AaveLabs

A second vector is credit against AMM positions. Because LP shares carry path-dependent risk (impermanent loss, fee accrual, oracle drift), the underwriting has to be context-aware. V4’s Spoke logic can track pool composition, volatility bands, and oracle quality, then tune LTVs and liquidation paths accordingly, which makes AMM-backed borrowing viable at scale rather than a boutique feature. This grants new utility for idle LP capital, and a fresh source of interest spread and liquidation proceeds for the DAO.

We’re looking forward for this use case in specific!
Thanks for sharing all potential for Aave V4. It’s clear that capital efficiency can get even better once Aave V4 is live.
Balancer has already worked on Oracles for our BPTs (Balancer pool tokens) to help increase the level of security for it to be used as collateral. This type of composability has shown it’s potential with Boosted Pools and will show it again with V4.
Looking forward to working together and being sure we can integrate in all levels from day one! Cheers!!