Summary
TLDR: MakerDAO is considering allocating 600 million DAI to USDe stablecoin pools via Morpho Labs, reflecting confidence in USDe’s potential and offering lower liquidity risk. BA Labs analysis recommends focusing on higher leverage USDe pools. Ethena Protocol’s commitment to transparency and risk mitigation measures are noted. Ethena is set to airdrop its native ENA token on April 2, 2024, as USDe climbs to fifth in global stablecoin rankings.
Key Points
1. MakerDAO is considering allocating 600 million DAI to the USDe synthetic dollar stablecoin via Morpho Labs, reflecting confidence in USDe’s potential and potentially benefiting Ethena’s TVL growth.
2. User demand for USDe-backed lending pools within the MakerDAO ecosystem is strong due to attractive yield-earning potential and the opportunity to earn ENA tokens. The analysis recommends focusing on higher leverage USDe pools with a larger DAI allocation.
3. The strategic redirection of DAI towards USDe pools offers advantages such as lower liquidity risk for collateral, immediate redemption of USDe, and a larger revenue share for Ethena’s insurance fund. Measures are being taken to mitigate risks associated with custody, exchange counterparties, and exposure to liquid staking tokens.