Aave launches proposal to counter MakerDAO DAI expansion risk

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The proposal aims to lower risks with minimal user impact, as only a tiny portion of DAI is collateral on Aave, and users can switch to USDC or USDT.

Lending protocol Aave launched a new Aave Risk Framework Committee (ARFC) proposal to adjust the risk parameters of the Dai (DAI) 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 released on April 2 suggests that sDAI incentives be removed from the Merit program, effective from Merit Round 2 and beyond.

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