Since users can convert to USDC or USDT and only a small percentage of DAI is collateral on Aave, the idea seeks to reduce risks with the least amount of harm on consumers.

Lending guidelines To modify the risk parameters of the Dai DAI, Aave has released a revised proposal for the Aave Risk Framework Committee (ARFC) $1.00 stablecoin.

The suggestion was made by the Aave Chan Initiative (ACI) team, who suggested that DAI's loan-to-value ratio (LTV) be changed to 0% for all Aave deployments.

A portion of the proposal, which was made public on April 2, calls for the elimination of sDAI incentives from the Merit programme starting with Merit Round 2.

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

USDC $1.00 or Tether USDT$1.00 as alternative collateral options.

On a smaller scale, the proposal offers an example of dangerous minting techniques, such as Angle's AgEUR (EURA), which was minted into EULER and was compromised in less than a week.

When used as loan collateral on AAVE, the overcollateralized stablecoin protocol Angle and the decentralised euro stablecoin AgEUR serve as prime examples of the risks associated with DAI's stablecoin depegging.

Protocol for decentralised finance According to co-founder Rune Christensen, MakerDAO has begun preparations for the launch of its much awaited "Endgame" transition, which will direct the platform "towards scalable resilience and sustainable user growth."

In forum posts dated March 12, Christensen announced the commencement of “launch season” for the decentralized finance (DeFi) lending protocol, outlining a five-phase plan.

Phase 1, scheduled for mid-2024, involves engaging an external marketing firm to rebrand the operation into a more straighforward and enjoyable concept.

The endgame's ultimate objective is to raise the market value of DAI, the protocol's decentralised stablecoin, from its present $4.5 billion to "100 billion and beyond," to match that of rival Tether's USDT.

Every Maker MKR will be renominated by MakerDAO $ 3,713, twenty-four thousand NewGovTokens. Furthermore, holders of NewStable tokens who do not live in the US are permitted to farm 600 million NewGovTokens per year.

Eigenlayer acquired Aave, a massive loan company, on March 6. According to DefiLlama, Eigenlayer now commands $11.5 billion in total value locked (TVL), second only to Lido, an Ethereum liquid staking platform. This makes Eigenlayer the second-largest DeFi protocol.

Token Terminal statistics shows that Lido has fewer than 430 daily active users, compared to over 5,700 for Aave.