Aave has reduced its loan-to-value requirements for DAI after MakerDAO’s stablecoin gained indirect exposure to Ethena’s USDe.
The once-symbiotic relationship between decentralized stablecoin issuer MakerDAO and lending protocol Aave is fraying.
As new innovations are being tested within the decentralized finance (DeFi) sector, tension has started building up. The perceived risk of these innovations puts the two major protocols at a crossroads.
At the center of the controversy is a controversial stablecoin mirroring what’s known as a “basis trade” and Maker’s Direct Deposit Dai Module (D3M), Ethena’s USDe.
