MakerDAO could allocate $600 million worth DAI to USDe and sUSDe

MakerDAO is considering allocating DAI to a value of $600 million. The allocation will be to USDe and sUSDe via Morpho Labs. The allocation could go as high as $1 billion worth of DAI tokens. The objective is to enhance the TVL growth of Ethena Labs. Notably, the proposal is under consideration, and the outcome is awaited.

Seraphim Czecker, the Head of Growth at Ethena, has expressed confidence in the development by stating that it perfectly aligns with their growth expectations. An investment of $600 million has been chosen based on a conservative threshold with the potential for a gradual scale-up as Ethena expands.

The development comes after Ethena Labs secured $14 million in a funding round, raising its valuation to $300 million. Additional financial support from MakerDAO instills a sense of confidence in the community, signaling that there is growth in the times to come. Approval of the proposal by MakerDAO will mark a pivotal moment for stablecoin integration and DeFi collaboration. The development also comes ahead of the native ENA token airdrop by Ethena Labs.

Defined as a strategic collaboration, the integration comes with a set of advantages, including lower liquidity risks for collateral. Another benefit pertains to retaining a larger revenue share for the insurance fund of Ethena.

Ethena Labs has reportedly taken all possible steps to mitigate inherent risks with exchange counterparties, custody, and exposure to liquid staking tokens. What strengthens the move in the market is MarkerDAO applying due diligence to safeguard the process. Athena Protocol remains committed to maintaining transparency by disclosing two key pieces of information: deposit addresses and collateral breakdowns.

Seraphim Czecker took to X to express confidence by saying that the TVL growth of Ethena is on track with internal expectations after informing him about the share that MakerDAO is planning to invest in via Morpho Labs.

USDe was last seen rising to the 5th spot in the list of global stablecoins. It now follows Tether, USDC, DAI, and FDUSD. USDe was seen featuring a market capitalization of $1.56 billion.

This announcement comes after Maker shared the news of deploying 100 million DAI Direct Deposit Modules to two markets of Spark: USDe/DAI and sUSDe/DAI. This enabled the over-collateralization of scalable liquidity for users who have often expressed interest in raising their exposure to the assets of Ethena.

Maker, in the official announcement, acknowledged that the product has been developed to meet the growing demand for new advanced leverage solutions.

The initial allocation is 100 million DAI. There is a possibility that they may increase liquidity further.

MakerDAO could soon announce its confirmation about allocating $600 million worth of DAI in sUSDe and USDe. It will mark a pivotal moment for DeFi and stablecoin integration while also powering investment in Ethena Labs, a move that aligns with its growth objectives.

Scott Cook

Scott Cook got into crypto world since 2010. He has worked as a news writer for three years in some of the foremost publications. He recently joined our team as a crypto news writer. He regularly contributes latest happenings of crypto industry. In addition to that, he is very good at technical analysis.

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