Aave V4 launches collateral swap feature on three markets

Aave Pro launched collateral swapping on Aave V4 across its Ethereum, Base, and Avalanche markets on November 4, enabling users to exchange one collateral asset for another without closing existing positions. The feature is powered by CoW Swap. It matters because it lets borrowers rotate collateral without unwinding debt positions, reducing friction and transaction steps in V4 markets. Watch for adoption across the three chains and whether the swap mechanism expands to additional V4 markets.