Aave's Proposal to Remove DAI as Collateral Raises Concerns in DeFi Community

Week in DeFi: Potential Risks Surrounding DAI Stablecoin and Upcoming Token Launches Across Multiple Chains. Aave proposes to remove DAI as collateral due to concerns about aggressive minting and potential contagion risks. Solana protocols, Tensor and Kamino Finance, announce upcoming tokens and airdrops, while Blast introduces Blast Multipliers on-chain.

Ethereum

Aave's Push to Remove DAI as Collateral

In a move that has sent ripples through the DeFi community, money market protocol Aave has initiated a proposal to remove the popular stablecoin DAI as collateral on its platform. This proposal stems from concerns regarding the "contagion risks" associated with DAI and MakerDAO's Direct Deposit Module (D3M), which has facilitated aggressive minting of DAI tokens.

DeFi Suite Frax Finance Unveils Roadmap

Frax Finance, a decentralized finance suite, has passed a governance vote for its Frax Singularity roadmap. The roadmap outlines plans for revenue sharing with veFXS holders, a partnership with Ethena Labs to provide FRAX liquidity to sUSDe lending pools, and FXS buybacks, among other initiatives.

MakerDAO Extends its DeFi Presence

MakerDAO-backed lending protocol Spark has successfully deployed 100 million DAI to Morpho's USDe/DAI and sUSDe/DAI vaults. This move enables MakerDAO to tap into DeFi opportunities in the market as part of its Endgame strategy.

Threshold Network Introduces thUSD Stablecoin

Threshold Network has deployed thUSD, a stablecoin backed by BTC and ETH. Users can mint thUSD by depositing either tBTC or ETH at a collateralization ratio of 110%. Currently, no interest is charged, but a one-time fee is required for minting thUSD.

Undercollateralized Lending Platform Goldfinch Suffers Default

Goldfinch, an undercollateralized lending platform, has experienced another default from the Lend East pool, which will only repay approximately 42% of its $10.25 million loan. The pool represents 7.7% of all active loans on Goldfinch.

Liquidity Bootstrapping Pool Platform Fjord Foundry Launches Token

Fjord Foundry, a liquidity bootstrapping pool (LBP) platform, is set to launch its FJO token in an LBP and token airdrop on April 16th. The LBP will distribute 7.5% of the token supply, with an initial circulating supply of 15 million tokens (15% of supply).

Layer 2 (L2) Developments

Blast Multipliers Go Live

Blast Multipliers are now operational. Earned through specific activities on the chain, Blast Multipliers permanently increase a user's point balance and the rate at which points are earned. Users can now acquire a Multiplier by utilizing any of the featured spot or perpetuals decentralized exchanges (DEXs) on Blast.

Celestia Expands to Arbitrum

Data availability layer Celestia has released Blobstream on Arbitrum One, allowing developers to deploy Arbitrum Orbit chains on Arbitrum and Base while leveraging Celestia's infrastructure.

Memeland Teases Upcoming L2

Memeland has announced Memenet, an upcoming L2 network that aims to provide a secure and cost-effective environment for degens to build on-chain. The network will use MEME as its gas token and anticipates launching a testnet in June and a mainnet in September.

Uniswap Expands to Blur L2

Uniswap, the top DEX on Ethereum, has launched on Blur L2, Blast. This integration enables liquidity providers to earn additional native yield on their positions due to Blast's rebasing functionality. A commemorative NFT has also been launched on Zora to celebrate the launch.

Payment-Focused Blockchain Fuse Network Announces Airdrop

Fuse Network, a payment-focused blockchain, has announced an upcoming airdrop program. Fuse Network is transitioning from an L1 to an L2 powered by Polygon's Chain Development Kit (CDK) as a zero-knowledge rollup.

Solana

Synthetix to Expand to Solana

Optimism-based synthetic asset trading protocol Synthetix has gained governance approval to deploy on Solana and Move-based chain Sui. This expansion aims to broaden the Synthetix ecosystem beyond Ethereum Virtual Machine (EVM) chains.

Cosmos

Sei Network Partners with AltLayer

Sei Network has joined forces with Rollup-as-a-Service provider AltLayer to facilitate the deployment of parallelized execution application-specific rollups. This partnership leverages the upcoming Sei V2 upgrade, which will bring a parallelized EVM to the chain.

Privacy-Focused Namada Unveils Roadmap

Namada, a privacy-focused chain, has revealed its upcoming roadmap leading up to its mainnet launch and genesis airdrop. The rollout will occur in five phases, introducing features such as staking, cross-chain transfers, and more.

Airdrops and Token Distributions

Ethena Labs Airdrop Claims Open

ETH-backed synthetic dollar protocol Ethena Labs has opened claims for its governance token, ENA. This coincides with the launch of Season 2 of their airdrop campaign, the Sats Campaign, which will continue until USDe reaches a $5 billion market cap or for five months, whichever occurs first.

Kamino Finance Airdrop Checker Released

Solana leading money market platform Kamino Finance has released an airdrop checker for its genesis token drop. Accumulating 303 points in the first season of their points program will translate to approximately 1 KMNO token.

Wormhole Airdrop Claims Open

Interoperability layer Wormhole has commenced claims for its W token airdrop, launched as a Solana-native SPL token. Future roadmap plans include delegation of W tokens for governance and multi-chain governance.

Tensor Airdrop Announcement

Solana NFT aggregator platform Tensor has declared the conclusion of Season 3 and the upcoming TNSR token airdrop. Users will receive Treasure Boxes for accumulated points from Seasons 1-3, which contain TNSR tokens. All boxes will be visible and openable on April 8th.

Commentary

Memes and Market Cycles

According to Humble DeFi Farmer, memes will continue to drive market cycles, and the chains that facilitate this speculation will flourish.