Aave Protocol (AAVE), one of the most advanced DeFi ecosystems so far, has released its AMM Market that allows for seamless integration of LP tokens from other protocols. Balancer (BAL) and Uniswap (UNI) are the pioneers of the new instrument.
According to the official announcement by Aave’s Marc Zeller, the protocol launched AMM Market. This model allows users to collateralize liquidity provider tokens of various protocols. The first release empowers LP assets of Uniswap (UNI) and Balancer (BAL) with this functionality.
Liquidity provider tokens (“LP tokens”) represent a sort of reward for providing liquidity to DeFi ecosystems. Thus, “yield farmers” from Balancer (BAL) and Uniswap (UNI) can benefit on Aave Protocol (AAVE) with rewards from their “native” protocols.