Highlights of the D3M Proposal on @MakerDAO

Summary: mint & Burn DAI in exchange for aDAI to stay within the Target Max Variable borrow rate of DAI in Aave Liquidity Pools
Benefits to Aave:
- More DAI for Aave borrowers (yay!)
- Lower borrow rates for Aave users
- Partnership with dominant decentralized stablecoin protocol

Given stablecoins pools are the most utilized pools on borrow/lend platforms, this will help Aave compete with Compound!
Benefits to Maker:
- Generate cash flows from interest earned on Aave
- DAI gains natural access to any L2/chains that Aave expands into
Questions for @AaveAave and @MakerDAO community:
- Is the D3M module utilizing collateral in Maker's users' vaults to mint DAI? This could be problematic because increase the risk of liquidation without users' consent.

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More from @QuirkyQwerty_

10 Apr
So... "loans that pay themselves off" is a great meme but what actually goes on under the hood of @AlchemixFi ?

Weather was gloomy today so I spent my not-so-lovely Saturday afternoon writing a thread👇
1/
Alchemix is a platform to create synthetic assets backed by yield

In simple terms, the borrower gives up yield on his assets to borrow a certain amount of money today (on Alchemix, you can borrow up to 50% of your collateral value)
2/
For example:

If I deposit 1000 DAI today, I can borrow up to 500 alUSD

At today's yields, ~38.5% APY coming from
- Yearn yDAI Vault: 10.9% APY
- Boosted Alchemix Yield: 27.6% APY

my loan will be "repaid" on 2 Feb 2023 Image
Read 22 tweets

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