The Aave community has started voting on the ARFC proposal to adjust DAI risk parameters in response to MakerDAO’s “radical actions”

PANews reported on April 10 that the Snapshot governance page showed that the ARFC proposal to “Adjust the Risk Parameters of DAI Stablecoin” proposed by the Aave Chan Initiative (ACI) team has opened for voting and will end on April 12. The proposal proposes adjusting DAI’s loan-to-value (LTV) to 0% on all Aave deployments and removing sDAI incentives from the Merit program, effective from Merit Round 2 and beyond.

According to previous news, this move is intended to respond to MakerDAO’s recent radical actions in the D3M plan, which caused the DAI credit line to grow from zero to a predicted 600 million DAI in less than a month, and may increase to 1 billion in the short term. The number of DAI coins increases the risk of DAI as collateral. Considering that only a small portion of DAI deposits are currently used as collateral on Aave, and that users can easily switch to USDC or USDT as alternative collateral options, the proposal aims to mitigate potential risks without significantly impacting the user base.

Yesterday’s news revealed that MakerDAO has voted to pass the proposal of “allocating $600 million in DAI to USDe and sUSDe” and has implemented it.