MakerDAO has announced the removal of its leading lending platform, Aave, as one of the platforms with direct deposit module (D3M) access to the lending pool.
The decentralized organization has decided to protect its protocol in case the ongoing Celsius crisis also affects the stETH pegs.
Maker Governance voted to temporarily disable it @AaveAave DAI Direct Deposit Module (D3M).
This change will be available on June 17, 2022 at 21:03 UTC.
— Maker (@MakerDAO) June 15, 2022
According to one of argument To support suggestion, Here’s why you need to move:
Of the 200m DAI borrowed from Aave Ethereum v2, 100m DAI is borrowed by Celsius and is primarily secured by stETH.
Therefore, with the above in mind, the protocol seeks to protect users from the high risk of borrowing stETH-backed stablecoin.
MakerDAO approves replacement of stETH
MakerDAO has made deeper attempts to block exposure to stETH, as DAO does. approved A new proposal to adopt rocket pool ETH (rETH) as a new type of collateral.
Maker Governance has voted to add rETH (@Rocket_Pool I bet ETH) as a new collateral type for the Maker protocol.
Voting result:
• 40,858 MKR voted in favor (winning option)
• 22,163 MKR voted NO.
• 0.22 MKR voted for ABSTAIN.
🗳 https://t.co/tBuFUuL2dS pic.twitter.com/cZGLRG6rk2
— Maker (@MakerDAO) June 16, 2022
rETH and stETH behave similarly because both can be redeemed for ETH 1: 1 when the merge is live. However, unlike stETH, which was depegated from Ethereum (ETH), rETH is currently trading at $ 1093 — equivalent to ETH.
The move further demonstrates the manufacturer’s intention to reduce its exposure to assets that are currently at stake.
Aave is voting to suspend ETH borrowing and freeze stETH
Another development at Aave is a proposal for a decentralized finance protocol to freeze stETH, raise the bet Ethereum liquidity threshold to 90%, and suspend Ethereum borrowing on the platform. I was gambling.
According to the proposal, it is designed to “reduce the risk to the Aave v2 market associated with stETH / ETH price deviations”.
The suggestion was that many users deposited stETH and rented Ethereum. This means that if the price differences between both assets continue, you will need to liquidate some positions with Aave.
At the time of pressing, 88% of Aave users Voted In opposition to the proposal, in one of them Claim that:
I believe that one of AAVE’s main objectives is to enable exactly this kind of speculation and market activity, so the market should be maintained as long as potential damage can be tolerated. think.
