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BTC $96,420 +2.34% ETH $3,280 +1.82% SOL $185.40 -0.92% BNB $642.50 +0.45% XRP $2.18 +3.12% DOGE $0.082 -1.50% ADA $1.05 +0.80% AVAX $42.10 +1.15%
BTC $96,420 +2.34% ETH $3,280 +1.82% SOL $185.40 -0.92% BNB $642.50 +0.45% XRP $2.18 +3.12% DOGE $0.082 -1.50% ADA $1.05 +0.80% AVAX $42.10 +1.15%
08/27/2023

Aave Adds sDAI to Collateral Assets

Aave, a leading lending platform, has officially included sDAI in its collateral asset list. Users can now deposit sDAI into Aave and borrow WETH at a corresponding rate. Update Details: sDAI now on Aave, wETH borrow rates due to the new optimized interest curve is now the cheapest of any blue chip protocol at 2.29%. Have fun with the delta-neutral leverage frens. — Marc “Billy” Zeller 👻 🦇🔊 (@lemiscate) August 28, 2023 * sDAI: This is a version of the DAI token with a 5% interest rate

Aave Adds sDAI to Collateral Assets

Aave, a leading lending platform, has officially included sDAI in its collateral asset list. Users can now deposit sDAI into Aave and borrow WETH at a corresponding rate.

Update Details:

  • sDAI: This is a version of the DAI token with a 5% interest rate from the DAI Savings Rate (DSR).
  • Support: sDAI will be supported as "Collateral-Only", meaning it can only be used as collateral and not for borrowing.
  • Borrowing Assets: Only DAI and WETH are supported as borrowing assets when collateralized by sDAI.

Proposal and Recommendations:

  • Aave-Chan Initiative & Chaos Labs: These entities are behind the proposal to support sDAI as collateral for minting GHO.
  • MakerDAO's DSR Fund: Aave holds a portion of funds in DSR and is considering supporting sDAI to mint GHO.

GHO Minting Halted:

Aave announced a temporary halt on minting GHO stablecoin to reassess risks and adjust the interest rate from 1.5% to 2.5% to ensure stability.

RWA Proposal for USDC:

Another controversial proposal is the deployment of Real World Assets (RWA) for USDC in the project's Treasury. This proposal has been approved, and Aave will experiment by converting $1 million USDC in the Treasury into short-term bonds, gradually increasing the proportion to 20% of the current stablecoin holdings.

Divergent Opinions:

  • Some believe that yields from Government Bonds, the specific Real World Assets in question, will soon diminish once the financial market returns to normal.
  • Accepting the custodial risk and accumulating off-chain assets might not be proportionate.