MakerDAO Moves to rETH, Distances Itself from Celsius, 3AC & Aave: A Deep Dive
In a significant shift, DeFi juggernaut MakerDAO is strategically repositioning itself within the decentralized finance landscape, distancing itself from potential risks associated with Celsius Network, Three Arrows Capital (3AC), and even Aave. This move signals a growing awareness and proactive approach to risk management within the DeFi ecosystem.
MakerDAO Embraces rETH: A Shift from stETH
MakerDAO on Friday authorized a request to move from Lido-Staked Ethereum (stETH) to Rocket Pool ETH (rETH) as the new collateral. This transition reflects a strategic diversification of collateral assets, aiming to bolster stability and reduce reliance on a single staking derivative.
Cutting Ties with Aave: Safeguarding DAI
Further demonstrating its commitment to risk mitigation, MakerDAO decided to cut off Aave (AAVE) from its direct deposit module as a safeguard. MakerDAO said on Thursday it will disable direct deposits with peer Aave due to the latter’s high exposure to a potential Celsius liquidation. This decisive action, resulting from concerns about Aave's potential vulnerability to Celsius-related liquidity issues, reflects MakerDAO's prioritization of the DAI stablecoin's stability.
The post MakerDAO reduces exposure to Celsius, disables Aave DAI supply. MakerDAO has announced the removal of the leading lending platform, Aave, as one of those. MakerDAO recently voted out the decision to cut off Aave from its service that allows the creation of DAI tokens. According to the project, it has concerns about the.
The Celsius and 3AC Effect: A DeFi Ecosystem Under Pressure
This past week, the decentralized finance (DeFi) ecosystem has been under considerable pressure, largely due to the ongoing financial troubles of cryptocurrency lenders Celsius and Three Arrows Capital (3AC). These events have prompted DeFi protocols to re-evaluate their risk profiles and implement measures to protect their users and assets.
The MakerDAO’s latest effort to lessen the effects of a probable bankruptcy of cryptocurrency lenders Celsius and Three Arrows Capital is the suggestion to embrace a more cautious approach. This strategic realignment is crucial for maintaining the long-term health and stability of the DAI stablecoin.
Community Reaction: A Topic of Intense Discussion
The move was bought up in 31 votes, 16 comments. 7.4M subscribers are actively engaged in the CryptoCurrency community, the leading community for cryptocurrency news, discussion, and analysis. In a move to reduce exposure to the embattled Celsius Network, MakerDAO has voted. The community is closely watching these developments, recognizing the significant impact on the broader DeFi landscape.
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In conclusion, MakerDAO's proactive steps to embrace rETH and distance itself from potential risks associated with Celsius, 3AC, and Aave are indicative of a maturing DeFi ecosystem that is learning to navigate turbulent market conditions with greater resilience. These moves are aimed at safeguarding DAI and maintaining stability within the decentralized finance space.