Aave proposal to peg Ethena's USDe to USDT raises concerns
Is Ethena’s “synthetic dollar” bringing a new systemic risk to decentralized finance (DeFi)? While keen to avoid being labeled as a stablecoin, USDe is increasingly being utilized as such across some of the biggest players in DeFi. Some are worried, however, that treating USDe as a centralized stablecoin changes its risk profile as a collateral asset. An influential MakerDAO community member, known as “ImperiumPaper,” has pointed to possible conflicts of interest between risk advisors working for Aave and Maker, who also have (or have had) associations with Ethena. The situation has been likened to “ a real estate agent representing both buyer and seller .” Just so I’m even-handed, these conflicts of interest for risk consultants aren’t isolated to Maker. Chaos Labs and LlamaRisk propose to hardcode @aave USDe price to 1 USDT. https://t.co/GBhSIyji00 pic.twitter.com/JQjsqPu6nZ — PaperImperium (@ImperiumPaper) January 2, 2025 Read more: Et...