🥊 Tensions Escalate Between MakerDAO and Aave

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MakerDAO and Aave are falling out, with a proposal to abandon support for DAI as collateral appearing on Aave’s governance forum. The move follows MakerDAO moving to quickly ramp up the debt ceiling for DAI against USDe via the Spark DAI Morpho vault, and comes after Maker took exception to Aave launching a rewards program disincentivizing Spark and Morpho adoption.

The crypto markets are off to a bearish start to the week, with Bitcoin sliding more than 7% since the start of April. Cryptocurrencies and mainstream markets are both performing bearishly as the Dollar Index ramps up in response to an unexpectedly strong performance in the manufacturing sector.

Ethena’s ENA airdropped kicked off at a $1 billion market cap and has since rallied to push above $1.7 billion. Ethena also launched the second season of its airdrop campaign and onboarded support for BTC and stETH.

Plus, the Ethereum community is up in arms over research from the Ethereum Foundation advocating for a reduction in the rate of new Ether issuance, with critics warning such a move would undermine the neutrality of Ethereum’s monetary policy.

✍️ In today’s newsletter:

  • MakerDAO’s USDe support roils Aave
  • Markets slump since record March close
  • Ethena airdrops ENA at ten-figure valuation
  • Should Ethereum reduce ETH issuance?


📈 Markets in the last 24 hrs:

Bitcoin$65,774-5.75 %
Ethereum$3,296 -6.05 %
Gold 1st Future$2,261 1.10 %
S&P 5005205.81 -0.72 %
Arch Web32.76 -6.49 %
Learn more about Arch Indices ,[object Object]%


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🤼‍♂️ DeFi Projects Clash After MakerDAO Adds Ethena’s USDe As Collateral


Aave and Nostra Finance are moving to remove support for MakerDAO’s DAI stablecoin as collateral in response to Maker floating a rapid expansion in its support for Ethena’s controversial yield-bearing USDe token. Aave said Maker has become “unpredictable in terms of risk management,” with the proposal following a spat between Aave and Maker over Aave’s incentive program penalizing users that use rival protocols including MakerDAO’s Spark Lend.

📉 Crypto Markets Turn Sharply Lower As Dollar Strengthens

Crypto markets are off to a bearish start to the month, with Bitcoin sliding 7% and the combined capitalization of digital assets shedding $200 billion since the start of April. Global markets are also down after the U.S. Dollar Index rallied on strong U.S. manufacturing data.



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🪂 Ethena Labs ENA Launches at $1 Billion Market Cap Post Airdrop As “Sats Campaign” Kicks Off

Ethena Labs airdropped 5% of ENA’s supply to early adopters at an impressive $1 billion market cap. ENA is the latest token to buck the usual initial downward momentum suffered by airdropped assets, with ENA rallying to a $1.7 billion capitalization since. Ethena also launched support for Bitcoin and stETH alongside kicking off its second points season.

🪙 Ether Issuance Emerges As Hotly Contested Issue

A new report from Ethereum Foundation researchers has ruffled feathers across the Ethereum community after advocating for a reduction in new Ether emissions. The post argues in favor of updating ETH’s Proof of Stake four-year-old issuance curve in response to the current state of the staking landscape. However, many onlookers believe tinkering with Ethereum’s monetary policy at the behest of the researchers would undermine the perceived neutrality of the network.


  • Seven central banks in BIS Project Agora to tokenize cross border payments (Ledger Insights)
  • Crypto VC Paradigm in Talks to Raise Over $750 Million for Fund (Bloomberg)
  • U.S. SEC Calls for Comments on Spot ETH ETFs (CoinDesk)


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