The Aave community has initiated a temperature check proposal to integrate MakerDAO's DSR into Aave V3 Ethereum pool.
BlockBeats News reported on June 2nd that MarcZeller, a member of the Aave community, proposed integrating MakerDAO's DSR into the Aave V3 Ethereum pool. This proposal would integrate MakerDAO's DAI savings rate (DSR) into the Aave V3 ETH pool by integrating sDAI (an ERC-4626 Vault Token that includes DSR earnings) into the Aave protocol. By integrating DSR into Aave through sDAI, liquidity providers of Aave can benefit from the DSR rate without paying additional fees to Aave DAI borrowers.
At the protocol level, when a user deposits DAI, the protocol wraps their DAI into sDAI and delivers aDAI to the user. When a user borrows DAI, the protocol unpacks the stored sDAI, delivers DAI, and accumulates the debt amount in DAI.
DSR is a variable interest rate set by MakerDAO governance, allowing DAI holders to earn savings by locking their DAI in the DSR contract. Recently, the MakerDAO governance plan proposed to increase the DSR rate to 3.3%. However, the latest update from MakerDAO governance shows that the DSR will now be set at 3.49% instead of 3.3%. The proposal has just ended the voting stage and will soon enter the execution voting stage.
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