The Aave Risk Framework Committee (ARFC) proposed adjustments to the Dai stablecoin's risk parameters, led by the Aave Chan Initiative (ACI) team. The proposal suggests changing DAI's loan-to-value ratio (LTV) to 0% across all Aave deployments and removing sDAI incentives from the Merit program starting from Merit Round 2.

The initiative aims to counter MakerDAO's aggressive D3M plan, which significantly increased the DAI credit line in a short period. To mitigate risks, users can switch to alternative collateral choices like USDC or USDT.

The proposal highlights the risks of stablecoin depegging, as seen with Angle and its AgEUR minting issues. MakerDAO is preparing for the launch of its Endgame, focusing on scalable growth and resilience. The transformation aims to propel DAI from a $4.5 billion market cap to over $100 billion, competing with Tether's USDT.

On March 6, Eigenlayer surpassed Aave to become the second-largest DeFi protocol with a total value locked (TVL) of $11.5 billion, only trailing behind Lido. Aave boasts over 5,700 daily users compared to Lido's under 430, according to Token Terminal data.