- Aave’s new proposal suggests altering DAI’s loan-to-value ratio to 0% to mitigate risks from MakerDAO’s rapid DAI credit line expansion.
- The initiative intends to remove sDAI incentives from Aave’s Merit program, starting with the upcoming Merit Round 2.
- MakerDAO’s “Endgame” transformation aims for DAI’s growth to a $100 billion market cap, with phased plans including a rebranding and a token redenomination.
Aave, a platform that allows people to borrow and lend digital money, is making changes to how it handles a type of digital money called DAI. DAI is special because its value doesn’t change much, which is good for borrowing and lending. Aave wants to make it safer for people to use DAI on its platform because of some big plans from another group called MakerDAO, which creates DAI.
MakerDAO has big dreams to make DAI even more popular, hoping it will be used as much as another digital money, USDT. They have a big plan with different steps, including making their project easier to understand and more fun.
Some people at Aave are worried because MakerDAO is letting people borrow a lot of DAI really fast. They’re worried it might not be safe. So, Aave is suggesting that people shouldn’t be able to borrow DAI on their platform using DAI as a promise to pay it back. This is to make sure everything stays safe and people don’t lose their money.
Evolving the Ecosystem
Aave’s team, which they declared as ACI, thinks this is a good idea for now. They also want to stop giving extra rewards for using DAI in a special program after the next round. This is to make sure that borrowing and lending DAI stays safe and doesn’t cause problems.
MakerDAO’s Big Plans
Meanwhile, MakerDAO isn’t just sitting around. They’re starting what they call the “Endgame,” which is their big plan to make DAI even more popular and used by more people. They’re going to change how their own digital money works and have a lot of it ready for people who want to use it in different ways, especially if they’re not in the United States.
Aave is still used by a lot of people every day. MakerDAO’s big plans could change how people use digital money, making DAI a very important part of the digital money world.
