In 2019, @Uniswap described this interesting idea on how to use liquidity provider (LP) tokens as collateral in a MakerDAO colla
16 Feb 2023, 15:58
In 2019, @Uniswap described this interesting idea on how to use liquidity provider (LP) tokens as collateral in a MakerDAO collateralized debt position (CDP) to generate DAI.
Today, over ~$500 million worth of LP tokens are deposited in the Maker Protocol as collateral for DAI.
🧠 The idea of collateralizing Uniswap liquidity tokens has been brought up a number of times recently.
🌐 This is the true potential for Uniswap. To become core infrastructure integrated seamlessly into a new, highly interoperable financial system.
😍 Here's a pretty picture.