I see it’s discussed in multiple threads here, spend over hour reading them but didn’t see getting to anything actionable?
As a user that has both significant CDP, MKR and liquidity positions in uniswap I would like to share the value I see in such decision for whatever it’s worth.
Right now I have to choose between collateralizing crypto to access liquid cash (since I’m long term holder and won’t sell at current prices) and putting my assets to work and generate me passive ROI.
Well, I’m currently doing both but the crypto that is currently collateral in makerdao is not productive for me.
If I can collateralize LP uniswap tokens, I’ll be able to have my assets work for me earning me passive income and at the same time use them to access fresh cash for other, more active investments or ongoing expenses.
That for me will be like being able to eat my cake and have it at the same time.
Heck, I’ll even (probably) be able to cover the MKR interest from my uniswap income and have some left over. From my perspective having access to debt for free.
Now from the makerdao and MKR holders perspective that is also VERY good because ton of people will be generating debt and won’t mind paying the interest indefinitely if they are making more from those assets than the interest.
For example right now only the ETH-WBTC uniswap pool has almost half billion $.
In 45 days the UNI rewards will stop and those people won’t have to stake their LP tokens at uniswap but will be able to do whatever they want with them.
The other slight positive is that by having LP token that represent 2 assets you average down the risk a little.
TL;DR If you have uniswap LP tokens as collateral, it’s great for both the users of MakerDAO, and the DAO and it’s MKR holders as well. Win-win.