CoW Swap powers Aave V4 collateral swaps on Ethereum, Base and Avalanche

Aave has added collateral swaps to Aave V4 markets on Ethereum, Base and Avalanche, with CoW Swap handling the routing behind the feature, according to posts from both projects. The change lets users swap collateral without closing their open positions, a useful adjustment for borrowers managing loans on-chain.

The announcement was shared by Aave on X and echoed by CoW Swap, which said it now handles position swaps for Aave V4 across the three markets. A report from Exchange.news also described the integration as live through Aave Pro.

In practical terms, the feature changes how users can adjust their posted collateral while keeping their loan active. That matters for borrowers who want to rebalance exposure or replace one asset with another without first unwinding the position.

The update is limited to the markets named in the posts: Ethereum, Base and Avalanche. No additional rollout details were included in the posts cited, and the announcement did not elaborate on broader expansion plans.

The integration also highlights a familiar DeFi pattern: one protocol providing the lending market while another handles execution and routing in the background. In this case, Aave is presenting the user-facing lending change, while CoW Swap is positioned as the swap layer that makes the collateral exchange possible.