Aave

Maker

DeFi

USDC

Lending protocol Aave launched a new Aave Risk Framework Committee (ARFC) proposal to adjust the risk parameters of the Dai (<a href="https://cointelegraph.com/dai-price-index">DAI</a>) stablecoin. 
The Aave Chan Initiative (ACI) team put forward the proposal, suggesting that DAI’s loan-to-value ratio (LTV) be adjusted to 0% on all Aave deployments.
Part of the proposal <a href="https://governance.aave.com/t/arfc-risk-parameters-for-dai-update/17211" target="_blank" rel="noopener nofollow">released</a> on April 2 suggests that sDAI incentives be removed from the Merit program, effective from Merit Round 2 and beyond. 
This action aims to counteract MakerDAO’s recent aggressive D3M plan, which rapidly expanded the DAI credit line from zero to an estimated 600 million DAI within a month, potentially reaching 1 billion DAI soon.
The proposal seeks to reduce potential risks while minimally impacting users, given that just a fraction of DAI deposits serve as collateral on Aave, and users can readily switch to USD Coin (<a href="https://cointelegraph.com/usdc-price-index">USDC</a>) or Tether (<a href="https://cointelegraph.com/tether-price-index">USDT</a>) as alternative collateral options.
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 Mark Zeller, founder of the Aave Chan Initiative, proposes changes to th&nbsp; &nbsp;Source:&nbsp;Aave&nbsp;
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The proposal provides an example of risky minting practices on a smaller scale, such as with Angle’s AgEUR (EURA), which was minted into EULER and was hacked within a week. 
Angle, an overcollateralized stablecoin protocol, and AgEUR, a decentralized euro stablecoin, exemplify the dangers of DAI’s stablecoin depegging when utilized as loan collateral on AAVE.
Decentralized finance protocol MakerDAO has started preparing to&nbsp;<a href="https://cointelegraph.com/news/makerdao-endgame-to-launch-aims-for-100-billion-dai-rival-tether">launch its highly anticipated “Endgame”</a>&nbsp;transformation, which will focus the platform “toward scalable resilience and sustainable user growth,” according to co-founder Rune Christensen.
In forum posts dated March 12, Christensen announced the commencement of “launch season” for the decentralized finance (DeFi) lending protocol, <a href="https://cointelegraph.com/news/makerdao-publishes-5-phase-roadmap-featuring-funding-for-open-source-ai-projects">outlining a five-phase plan</a>. 
Phase 1, scheduled for mid-2024, involves engaging an external marketing firm to rebrand the operation into a more straightforward and enjoyable concept.
Related: <a href="https://cointelegraph.com/news/floki-inu-roadmap-reveals-plans-for-regulated-bank-accounts">Floki Inu roadmap reveals plans for regulated bank accounts</a>
The ultimate goal of the Endgame is to scale the protocol’s decentralized stablecoin, DAI,&nbsp;from its current $4.5-billion market capitalization to “100 billion and beyond,” <a href="https://cointelegraph.com/news/stablecoin-tether-usdt-100-billion-market-cap">on par with rival</a> Tether’s USDT.
MakerDAO will redenominate each Maker (<a href="https://cointelegraph.com/maker-price-index">MKR</a>) token into 24,000 NewGovTokens. Additionally, NewStable tokenholders not residing in the United States can also farm 600 million NewGovTokens annually.
On March 6, Eigenlayer <a href="https://cointelegraph.com/news/restaking-eigenlayer-flips-aave-ten-billion-locked-value-tvl">flipped lending giant Aave</a> to become the second-largest DeFi protocol, commanding $11.5 billion in total value locked (TVL),&nbsp;<a href="https://defillama.com/protocol/eigenlayer" target="_blank" rel="noopener nofollow">per</a> DefiLlama — second only to Ethereum liquid staking protocol Lido. 
Aave, meanwhile, has over 5,700 daily active users, while Lido has under 430, according to Token Terminal <a href="https://tokenterminal.com/terminal?panel=user_dau" target="_blank" rel="noopener nofollow">data</a>.
Magazine: <a href="https://cointelegraph.com/magazine/crypto-inevitable-all-in-meet-vance-spencer/">‘Crypto is inevitable’ so we went ‘all in’ — Meet Vance Spencer, permabull</a>

Aave launches proposal to counter MakerDAO DAI expansion risk

Cointelegraph

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