DeFi project MakerDAO is considering setting a limit of 600 million DAI for investments in USDe through the Morpho Labs protocol.
The “synthetic stablecoin” based on Ethereum is issued and supported by Ethena Labs.
The governance proposal from MakerDAO states that USDe provides a reward score of seven, while the “wrapped” version sUSDe from Morpho offers five and approximately 30% annual yield. However, the first option is preferred by users, noted MakerDAO.
As of March 29, the project reached the previously set limit of 100 million DAI, placed for passive earnings on USDe. The new proposal allows for an increase up to $1 billion.
“Using the lowest of the above thresholds gives a maximum recommended risk of $600 million. It will gradually increase as Ethena grows, but for now, we believe it is prudent to cap the overall allocation at this level,” states the message on the MakerDAO governance forum.
Ethena’s Head of Growth, Seraphim Cheker, noted that the increase in the protocol’s locked value “aligns 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
According to CoinGecko, the market capitalization of USDe exceeds $1.5 billion, while DAI’s figure approaches $5 billion.
Earlier, on April 2, Ethena Labs announced an airdrop of 750 million ENA governance tokens among participants of the Shard incentive program.