Aave's new proposal suggests adjusting DAI collateral risk parameters, setting LTV to 0

Aave Chan Initiative (ACI) launches a new ARFC proposal aimed at adjusting the risk parameters of the DAI stablecoin. The proposal proposes adjusting the loan-to-value ratio (LTV) of DAI to 0% on all Aave deployments and removing the sDAI incentive from the Merit program, effective from Merit Round 2 and beyond. This move is intended to respond to MakerDAO's recent aggressive action on the 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 serve as collateral The risk of things increases. Considering that only a small portion of DAI deposits are currently used as collateral on Aave, and that 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.