From trapped capital to usable capital
LP positions have traditionally been productive but inflexible. They earn trading fees and support market depth, but if you want liquidity from that position, the usual path is to unwind it: break the position apart, interrupt fee generation, and turn a productive asset into idle balances. LP collateral changes that. Through Avana on Aave v4, supported LP positions can stay active in the underlying AMM while also supporting borrowing.
