Marc Zeller, founder of the Aave Chan Initiative, posted on the X platform that Aave may soon vote on whether to turn on the "fee switch" and distribute fees to Aave stakers.
Aave DAO's current net profit totals about $60 million per year, which can cover five years of operating costs. He said that a temperature check vote to activate the "fee switch" will be held next week. (The Block)
Previously, the Aave Chan Initiative (ACI) launched a new ARFC proposal to adjust the risk parameters of the DAI stablecoin. The proposal proposes to adjust DAI's loan-to-value ratio (LTV) to 0% on all Aave deployments and remove sDAI incentives from the Merit program, effective from Merit Round 2 and beyond.
This move is intended to respond to the aggressive actions of MakerDAO's recent D3M plan, which caused the DAI credit line to grow from zero to a predicted 600 million DAI in less than a month, and may increase to 1 billion DAI in the short term, making DAI more risky as collateral. Given that only a small portion of DAI deposits are currently used as collateral on Aave, and users can easily switch to USDC or USDT as alternative collateral options, the proposal aims to mitigate potential risks without significantly impacting the user base.