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- MakerDAO is considering allocating up to $600 million DAI into sUSDe and USDe via the Morpho Labs vault.
- Seraphim thinks MakerDAO’s allocation could positively impact Ethena TVL’s growth.
- Marc Zeller thinks the proposed allocation is a reckless move by MakerDAO.
According to Seraphim, Ethena Labs’ Head of Growth, MakerDAO is considering allocating up to $600 million DAI into sUSDe and USDe via Morpho Labs vault. Citing a post on the MakerDAO forum, Seraphim noted that the allocation could go up to $1 billion, with the Ethena TVL growth on track with internal expectations.
Not a joke: @MakerDAO considering allocating up to $600m DAI into sUSDe and USDe via @MorphoLabs with possibility to go up to $1 billion Ethena TVL growth is on track with internal expectationshttps://t.co/kKEhPoDwQm pic.twitter.com/F1QP1xPBFW— Seraphim (@MacroMate8) April 1, 2024
In the cited post, a member of the BA Labs team, identified as monet-supply, highlighted the early performance data from the Morpho Spark DAI as the reason behind the recommendation of allocation adjustments. The poster noted that the Spark DAI vault saw strong demand almost immediately upon launch.
According to the BA Labs team member, there were a few clear user demand trends based on how the pools became fully utilized. He noted that users showed a strong preference for USDe over sUSDe pools and also showed a preference for higher over lower leverage. They particularly preferred pools with LLTV of 86% and above.
From his observation, monet-supply noted users’ preference for USDe over sUSDe. According to him, USDe offered 7x points at the time of his post, while sUSDe offered only 5x points plus about 30% yield. With such observations, the BA Labs team member believes the users highly value Ethena points and the opportunity to earn ENA tokens.
Marc Zeller, the founder of Aave Chain Initiative (ACI), has faulted the considered allocation of up to $1 billion by MakerDAO via the Morpho Labs vault. According to Zeller, that would imply minting about 20% of the stablecoin’s supply out of thin air.
In a recent post on X, Zeller referred to Morpho Labs as a non-battle-tested protocol with zero risk mitigation. He thinks the proposed allocation is a reckless move by MakerDAO, noting he would propose LTV reduction on Aave.
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