Summary
Aave’s DAO has been making moves to preserve alignment within the organization, including cutting out competitors from airdrops and proposing a 0% loan-to-value ratio for MakerDAO’s DAI stablecoin. Some worry this loyalty focus may lead to a more segmented DeFi space. The recent proposals have been led by the Aave Chan Initiative, with a focus on synergy with other protocols. A proposal to allocate $1 billion of Maker’s balance sheet into USDe and sUSDe tokens triggered a response from Aave, with Aave founder Stani Kulechov supporting offboarding DAI from Aave markets. The potential breakup between Aave and Maker has raised concerns about the future of DeFi interdependency.
Key Points
1. Aave’s DAO has been making moves to preserve alignment within the organization, including the departure of the market risk manager Gauntlet and the creation of a protocol embassy on the Arbitrum DAO.
2. A recent proposal by Aave DAO aims to set the loan-to-value ratio for MakerDAO’s DAI stablecoin to 0%, potentially preventing DAI from being useful as collateral.
3. The recent proposals have been led by the Aave Chan Initiative, which serves as the primary delegate of Aave DAO, and has placed a premium on loyalty within the organization, leading to concerns about a more segmented DeFi space.