2024-04-02
MakerDAO, a decentralized finance (DeFi) project, is currently exploring the possibility of investing 600 million DAI into USDe and staked USDe (sUSDe) through the DeFi lending protocol Morpho Labs. This proposal, which is still in the early stages, has the potential to significantly impact Ethena Labs and its overall growth.
USDe and sUSDe are stablecoins that have been created by Ethena Labs. These stablecoins aim to maintain a stable value, making them ideal for various financial transactions within the decentralized ecosystem.
The proposed investment of 600 million DAI into USDe and sUSDe aligns with MakerDAO's objective of supporting and promoting the growth of stablecoins.
If approved by the MakerDAO community, this investment could greatly accelerate Ethena's total value locked growth. Seraphim Czecker, the Head of Growth at Ethena, has expressed optimism regarding the potential impact of this investment during an interview on X.
The proposal suggests a maximum recommended exposure of 600 million DAI to USDe, based on careful consideration of various factors. This allocation is designed to be gradually increased as Ethena expands its operations. However, given the current circumstances, it is deemed prudent to cap the allocation at this level.
To put this proposal into perspective, it is important to note that USDe currently has a supply of 1.34 billion tokens, accounting for approximately 1.74% of the total Ethereum stablecoin supply, as reported by The Block's Data Dashboard. This investment would represent a significant portion of the circulating supply, potentially impacting the stability and liquidity of USDe.
It is worth mentioning that Ethena Labs recently secured $14 million in funding in February, valuing the company at a total of $300 million, as reported by The Block. This funding round not only demonstrates confidence in Ethena's business model but also highlights the potential for growth and innovation within the DeFi sector.
