MakerDAO Implements Plan to Inject Additional DAI into USDe Lending Pools

After a period of voting, MakerDAO has approved a proposal to inject up to 1 billion DAI into lending pools with collateral assets being USDe/sUSDe stablecoins developed by Ethena.

MakerDAO Implements Plan to Inject Additional DAI into USDe Lending Pools

The proposal was approved on the evening of April 7 and the changes outlined in the proposal were officially implemented on the mainnet on the afternoon of April 8.

Among the changes, the most notable is raising the maximum debt ceiling of the Spark - MetaMorpho Vaults from the current 100 million DAI to 1 billion DAI. However, the initial allocation for these Vaults will be 600 million DAI.

This change has sparked debates within the Aave and MakerDAO communities over the past week.

Additionally, due to higher demand for holding USDe over sUSDe (because of Ethena's reward point mechanism), MakerDAO has proposed allocating a larger amount of DAI to pools with USDe as collateral.

Below is the allocation list of 600 million DAI into pools with different loan collateralization rates.

The final change related to Ethena involves allocating DAI to invest in synthetic products of the Ethena Protocol, with advisory from BlockTower Capital, custody services from Coinbase, and payment services from Ankura Trust.

Other Technical Changes

Apart from the Ethena-related proposals, the following technical changes have been included:

• Extending the execution time after a vote passes from 16 hours to 30 hours to mitigate risks.
• Raising the borrowing cap for Vaults with ETH and BTC collateral.
• Adding an emergency shutdown mechanism for Vaults with ETH, WSTETH, and WBTC collateral.

These changes aim to enhance the flexibility and security of MakerDAO's lending platform while accommodating the increasing demand for USDe and its associated rewards from Ethena.