MakerDAO will increase investments in USDe from Ethena to $600 million

DeFi project MakerDAO will consider setting a limit of 600 million DAI for investments in USDe through the Morpho Labs protocol.

Ethereum-based “synthetic stablecoin” released and supported by Ethena Labs

MakerDAO’s governance proposal states that USDe provides seven reward points, while Morpho’s wrapped version of sUSDe provides five reward points and approximately 30% annualized returns. However, the first option is preferable for users, noted MakerDAO.

As of March 29, the project reached the previously established limit of 100 million DAI placed for passive earnings on USDe. The new proposal allows for an increase to $1 billion.

“Using the lower of the above thresholds results in a maximum recommended risk of $600 million. This will gradually increase as Ethena grows, but for now we believe it is reasonable to cap the overall allocation at this level,” says a post on the MakerDAO governance forum .

Ethena’s head of growth, Seraphim Checker, noted that the increase in the amount of value locked in the protocol is “in line with internal expectations.”

Not a joke: @MakerDAO considering allocating up to $600m DAI into sUSDe and USDe via @MorphoLabs with possibility to go up to $1 billion

Ethena TVL growth is on track with internal expectations pic.twitter.com/F1QP1xPBFW

— Seraphim (@MacroMate8) April 1, 2024

According to CoinGecko, USDe’s capitalization exceeds $1.5 billion, while DAI’s figure is close to $5 billion.

Data: CoinGecko. Let us recall that on April 2, Ethena Labs announced an airdrop of 750 million ENA governance tokens among participants in the Shard rewards program.