Aave Community Accepts Balancer BPT As Collateral

Aave community has voted to approve the proposal regarding the implementation of a new aToken primitive called “Staked aTokens”, and the addition of Balancer BPT (Balancer Pool Tokens) as collateral.

The proposal would allow for the use of LP tokens from ve-based protocols, like Balancer or Curve, as collateral while participating in those protocols’ ecosystems. LP tokens are locked at their corresponding gauges, producing increased rewards that are distributed to LP token suppliers to Aave.

The proposal advised Aave to integrate with Balancer first and to accept BPT (Balancer Pool Tokens) as collateral. To execute the proposal, Aave Companies would deploy a smart contract named BalancerVeRouter, which would allow the governance to turn BPT into veBAL, participate in the gauge weight voting, and claim Balancer Protocol revenue directly within the Aave DAO Treasury.

The revenue would be distributed to BPT providers so that they could get increased rewards.

According to the proposal, 99.99% of the voting power chose to support the proposal. After approval, it will release a proposal in the Balancer community to be allowed by BalancerDAO.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Website: coincu.com

Harold

CoinCu News