MakerDAO raises debt ceiling to $1 billion for Dai allocations in Ethena's stablecoin markets on Morpho
MakerDAO has raised its debt ceiling to $1 billion for Dai allocations in USDe and sUSDe markets through Morpho. It initially has planned a total allocation of $600 million of Dai to these markets.
This adjustment is part of a broader strategy to diversify MakerDAO’s collateral exposure — marking a major financial engagement with Ethena's stablecoin and also allowing the protocol to earn additional yields for users.
An initial $600 millio n from MakerDAO’s Dai holdings will be allocated to these lending markets, underlining the protocol’s commitment to Ethena’s USDe. This move is facilitated using MakerDAO’s Spark protocol, with a preference for allocations to USDe pools over those for sUSDe.
USDe, distinct from traditional stablecoins, leverages a backing mechanism that combines ETH and derivatives in a cash-and-carry trading framework. This involves staking Ethereum collected from USDe minters and engaging in simultaneous ether futures shorting, introducing a unique approach to stablecoin backing. Its rise has prompted discussions within the crypto sector about the associated risks, particularly concerning USDe’s yield generation methods.
In response to MakerDAO's laest allocation, there was a proposed call from an Aave contributor for a reassessment of Dai’s risk parameters across Aave’s lending markets, suggesting potential adjustments to loan-to-value ratios for Dai-based lending. Notably, Aave is a competitor to both MakerDAO and Morpho.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Livio from Xinhuo Technology: The value of the Ethereum Fusaka upgrade is underestimated
Weng Xiaoqi: The strategic value brought by Fusaka far exceeds its current market valuation, making it worthwhile for all institutions to reassess the long-term investment value of the Ethereum ecosystem.

Hyperliquid Whale Game: Some Make a Comeback Against the Odds, Others Lose Momentum

The largest IPO in history! SpaceX reportedly seeks to go public next year, aiming to raise over 30 billion and targeting a valuation of 1.5 trillion.
SpaceX is advancing its IPO plan, aiming to raise significantly more than $30 billion, which could make it the largest public offering in history.

DiDi has become a digital banking giant in Latin America
Attempting to directly replicate the "perfect model" used domestically will not work; we can only earn respect by demonstrating our ability to solve real problems.

