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- Maker DAO has reportedly planned to invest $600 million DAI into USDe and sUSDe via Morpho Labs.
- The development is expected to trigger the growth of USDe and sUSDe issuer Ethena, driving its TVL to highs.
- The proposal intends to invest more into the project with the growth of Ethena.
Maker DAO, a decentralized blockchain protocol on Ethereum, has reportedly planned to invest $600 million in DAI into USDe and staked USDe (sUSDe) via the DeFi lending protocol, Morpho Labs, driving Ethena Labs’ growth.
While both USDe and sUSDe are issued by Ethena, a synthetic dollar protocol built on Ethereum, the astounding development is expected to drive its total value locked (TVL) to highs. Ethena’s Head of Growth, Seraphim Czecker, shared an X post, revealing MakerDAO’s move to invest in USDe and sUSDe. According to his post, “Ethena TVL growth is 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
Maker DAO envisions investing further into the project with the growth of Ethena. According to the proposal shared by Morpho Spark DAI vault,
“Using the lowest of the above thresholds yields 600 million maximum recommended exposure to USDe. This will scale up gradually as Ethena grows, but for the time being we believe it is prudent to cap total allocation at this level.”
The proposal also hinted at the platform’s plan to allocate more funds towards USDe, considering users’ preference for USDe over sUSDe. The fund allocation reportedly depends on multiple factors, including Morpho rate models, custody and exchange transparency, and counterparty risks.
On March 29, Maker DAO announced the deployment of a 100-million DAI Direct Deposit Module to Spark’s sUSDe/DAI and USDe/DAI markets on Morpho Blue via its official X page. This move is reportedly intended to enable “overcollateralized scalable liquidity for users interested in increasing their exposure to Ethena’s assets.”
Maker has deployed a 100-million DAI Direct Deposit Module to Spark's sUSDe/DAI and USDe/DAI markets on Morpho Blue, enabling overcollateralized scalable liquidity for users interested in increasing their exposure to Ethena’s assets.Through @sparkdotfi, we collaborated with… pic.twitter.com/AEZlUASGsT— Maker (@MakerDAO) March 29, 2024
In related news, Ethena’s ENA token has been recently introduced on Binance Launchpool, allowing users to farm ENAs. With an initial supply of 1,425,000,000 ENA, Binance declared 300,000,000 ENA, constituting 2% of the maximum supply of 15,000,000,000 tokens, as Launchpool token rewards.
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