I think the best way to think about this one is to consider the BAL LP tokens as an entirely new asset, whether there is impermanent loss or not is not that relevant because the assumption is that the LP wants to accumulate this new “portfolio” asset. This should be analogous to how the Link vault works.
@monet-supply - supplying the BAL LP tokens as collateral on platforms like CREAM (or COMP but less likely) maybe another way to achieve the same goal. You would get Bal, Cream + yield on the stable coins. Thoughts?
There’s some benefit from borrowing from a platform that offers liquidity incentives. Compound (or Aave soon) could be a good fit if they decided to onboard Balancer LP tokens. But, Maker has the advantage of the Oracle security module 1 hr delay on price updates, which allows vaults to safely borrow more stablecoins against their assets with less risk of liquidation. I think the benefit of using a higher loan to value ratio with Maker probably outweighs slightly higher yields from borrowing with Aave or Compound.