{"id":144281,"date":"2023-09-01T16:20:54","date_gmt":"2023-09-01T10:50:54","guid":{"rendered":"https:\/\/dripp.zone\/news\/?p=144281"},"modified":"2023-09-01T16:20:54","modified_gmt":"2023-09-01T10:50:54","slug":"aave-launches-sdai-pool-as-makerdao-weighs-reducing-yields-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/aave-launches-sdai-pool-as-makerdao-weighs-reducing-yields-crypto-news\/","title":{"rendered":"Aave Launches sDAI Pool As MakerDAO Weighs Reducing Yields – Crypto News"},"content":{"rendered":"

<\/p>\n

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Aave v3, the leading decentralized lending protocol, enabled support for yield-bearing DAI as collateral on Aug. 28.<\/p>\n

Aave\u2019s Marc Zeller noted<\/a> that sDAI\u2019s yields enable delta-neutral lending on the protocol. sDAI tokens represent DAI stablecoins deposited in MakerDAO\u2019s DAI Savings Rate (DSR) module.<\/p>\n

Users have already deposited $37M worth of sDAI onto Aave v3 less than 24 hours after the pool\u2019s launch.<\/p>\n

The news comes after MakerDAO hiked<\/a> DSR yields to 8% from 3.3% on Aug. 6 in a bid to drive up adoption of DAI through Spark Protocol<\/a> \u2014 a DAI-focussed fork of Aave v3 launched by prominent MakerDAO community members in May that offers depositors access to the DSR.<\/p>\n

The increase was an immediate success, adding more than $1B to the DSR\u2019s total value locked (TVL) and maxing out<\/a> Spark\u2019s debt ceiling by Aug. 19. However, the spike in TVL also triggered a reduction in DSR yields from 8% to 5.8%.<\/p>\n

The DSR\u2019s TVL slumped from nearly $1.5B to $1.12B after the rate was reduced and has since rebounded to $1.26B, according to Dune Analytics.<\/p>\n

<\/p>\n

Dai Savings Rate TVL and capital flows<\/figcaption><\/figure>\n

<\/a><\/p>\n

MakerDAO Founder Proposes Rate Overhaul<\/h2>\n

Rune Christensen, MakerDAO\u2019s controversial co-founder, proposed<\/a> reducing the DSR\u2019s maximum yield to around 5% just 48 hours after yields increased to 8%.<\/p>\n

Christensen argued that \u201cmassive\u201d whales disproportionately benefited from the rate hike through recursive lending, crowding out the regular DAI users whom Maker had hoped would benefit from higher DSR yields.<\/p>\n

\u201cOverall, I think we can consider the experiment a success, but I want to propose some changes aimed to ensure that the EDSR benefits regular DAI holders rather than disproportionately benefit ETH whales,\u201d Christensen said.<\/p>\n

Christensen proposed limiting DSR yields to 5% alongside a corresponding increase in borrowing rates across Spark Protocol and Maker\u2019s vaults (excluding its ETH vaults) to prevent whales from engaging in recursive lending.<\/p>\n

Christensen also suggested introducing a \u201cretroactive subDAO farming airdrop\u201d to reward early Spark Protocol users and offset the blow of increased borrow rates. Christensen said he will publish a separate proposal outlining further details regarding the SPK airdrop at a later date.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Aave v3, the leading decentralized lending protocol, enabled support for yield-bearing DAI as collateral on Aug. 28. Aave\u2019s Marc Zeller noted that sDAI\u2019s yields enable delta-neutral lending on the protocol. sDAI tokens represent DAI stablecoins deposited in MakerDAO\u2019s DAI Savings Rate (DSR) module. Users have already deposited $37M worth of sDAI onto Aave v3 less […]<\/p>\n","protected":false},"author":2,"featured_media":144282,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[274,273,272,244,266,271,268,270,269,267],"class_list":["post-144281","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-de-fi","tag-crypto-finance","tag-decentralized-finance","tag-liquidity","tag-metamask","tag-pancake","tag-slippage","tag-sushiswap","tag-tronlink","tag-trust-wallet","tag-uniswap"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/144281","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=144281"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/144281\/revisions"}],"predecessor-version":[{"id":146021,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/144281\/revisions\/146021"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/144282"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=144281"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=144281"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=144281"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}