{"id":276147,"date":"2024-04-02T21:25:50","date_gmt":"2024-04-02T15:55:50","guid":{"rendered":"https:\/\/dripp.zone\/news\/?p=276147"},"modified":"2024-04-02T21:25:50","modified_gmt":"2024-04-02T15:55:50","slug":"aave-considers-dropping-dai-as-collateral-over-contagion-concerns-from-makerdaos-usde-move-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/aave-considers-dropping-dai-as-collateral-over-contagion-concerns-from-makerdaos-usde-move-crypto-news\/","title":{"rendered":"Aave considers dropping DAI as collateral over contagion concerns from MakerDAO\u2019s USDe move – Crypto News"},"content":{"rendered":"

Marc Zeller, the founder of the Aavechan Initiative, has proposed<\/a> to the decentralized autonomous organization (DAO) overseeing Aave<\/a> to remove DAI<\/a> stablecoin\u2019s collateral status within the protocol\u2019s lending ecosystem.<\/p>\n

This move comes in response to MakerDAO\u2019s <\/a>proposal to allocate 600 million DAI into the fast-rising synthetic dollar USDe and staked USDe (sUSDe) through the DeFi lending protocol Morpho Labs.<\/p>\n

MakerDAO\u2019s proposal<\/h2>\n

An analysis<\/a> by Block Analitica, a prominent MakerDAO advisory council member, highlighted the robust user demand for USDe-backed lending pools within the MakerDAO ecosystem. According to the firm, this demand is primarily fueled by the enticing yield-earning prospects of USDe and the opportunity to acquire ENA tokens.<\/p>\n

The analysis suggested a strategic focus on higher leverage USDe pools, particularly those with LLTV ratios of 86% and 91.5%, accompanied by a proportionally larger allocation of DAI.<\/p>\n

Ethena USDe<\/a> is a synthetic dollar supported by several stakeholders<\/a> within the community.\u00a0The digital asset has garnered significant attention from both retail and institutional traders owing to its impressive annual yield potential, reaching up to 27% at a certain point.<\/p>\n

Despite its allure, some crypto community members have voiced concerns r<\/a>egarding Ethena\u2019s risk profile.<\/p>\n

However, Seraphim Czecker, Ethena\u2019s Head of Growth, expressed<\/a> satisfaction with Ethena\u2019s growth, affirming that it aligns with internal projections. As of the press time, the total market capitalization of USDe stands at $1.6 billion. Aave founder Stani Kulechov called<\/a> the situation a \u201cVery risky move for DeFi.\u201d<\/p>\n

\u2018Contagion risks\u2019<\/h2>\n

Zeller explained that his proposal was necessary to \u201cmitigate potential contagion risks for the Aave users.\u201d<\/p>\n

According to him, MakerDAO\u2019s latest decision might heighten the risk of utilizing DAI as collateral. He further stressed that an Ethena\u2019s failure could profoundly impact DAI, potentially leading to contagion risks.<\/p>\n

He wrote<\/a>:<\/p>\n

\n

\u201cWith the potential extension of this credit line to 1 billion DAI in the near term, the unpredictability of future governance decisions by MakerDAO raises concerns regarding the inherent risk nature of DAI as collateral.\u201d<\/p>\n<\/blockquote>\n

Consequently, he proposed that Aave lowers the risk of contagion by setting the DAI loan-to-value ratio (LTV) to 0% across all versions of the Aave protocol. Additionally, he<\/span><\/span>\u00a0suggested removing staked DAI boosters from the merit program starting from the Merit Round 2 and subsequent rounds. <\/span><\/span><\/p>\n

The post Aave considers dropping DAI as collateral over contagion concerns from MakerDAO\u2019s USDe move<\/a> appeared first on CryptoSlate<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Marc Zeller, the founder of the Aavechan Initiative, has proposed to the decentralized autonomous organization (DAO) overseeing Aave to remove DAI stablecoin\u2019s collateral status within the protocol\u2019s lending ecosystem. This move comes in response to MakerDAO\u2019s proposal to allocate 600 million DAI into the fast-rising synthetic dollar USDe and staked USDe (sUSDe) through the DeFi […]<\/p>\n","protected":false},"author":2,"featured_media":276148,"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-276147","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\/276147","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=276147"}],"version-history":[{"count":1,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/276147\/revisions"}],"predecessor-version":[{"id":276149,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/276147\/revisions\/276149"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/276148"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=276147"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=276147"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=276147"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}