Hassan Maishera
On Wednesday, Aave Labs announced via X that it has proposed a Uniswap V4 Position Manager to the Uniswap DAO. This would enable the GHO stablecoin borrowing against Uniswap V4 LP positions via Hooks and establish a revenue-sharing model for both DAOs.
The Position Manager verifies collateral, enforces limits, and enables borrowing; starting with GHO, more asset support will come with Aave V4. Allowing users to borrow against LP positions brings a new level of capital efficiency to DeFi, letting users put liquidity to work.
Furthermore, Uniswap DAO would earn a 50% share of GHO borrow profit, aligning incentives across both protocols. Pending a successful vote, Aave Labs will complete and release development in the coming months.
Aave protocol is a decentralized, open-source, and non-custodial money market protocol. Depositors earn interest by providing liquidity to lending pools, while borrowers can obtain overcollateralized loans by using the liquidity from these pools. AAVE is trading at $183.64 per token, up 5% in the last 24 hours.
Uniswap is a decentralized exchange protocol built on Ethereum. To be more precise, it is an automated liquidity protocol. No order book or centralized party is required to make trades. UNI, the native token of Uniswap, is currently trading at $5.154, up 5% in the last 24 hours.
