Aave DAO votes to remove BUSD from V2 lending market
CriptoFácil – A proposal to remove (BUSD) from the no V2 market received huge support from community members.
The plan was initially floated by Aave community member Marc Zeller in February, shortly after the US Securities and Exchange Commission (SEC) and New York Department of Financial Services (NYDFS) cracked down on BUSD issuer Paxos.
Zeller’s AIP (update proposal) proposed freezing stablecoin Paxos at Aave ahead of an on-chain vote and changes to the decentralized lending protocol’s smart contract.
The community member opined that the supply of BUSD will dwindle to zero over time as Paxos is no longer able to mint new tokens.
The action plan focused on two main changes – a massive increase in the cost of BUSD borrowing and a reduction in borrowing interest.
BUSD
Zeller’s proposal suggested that these changes would dampen interest in the Binance-branded stablecoin and encourage users to switch to other stablecoins. Over 99% of the votes cast were in favor of the plan, with less than 1% of voters abstaining. There were no votes against the proposal.
According to the community page, voters spent around 668,000 AAVE tokens to signal their support for the stablecoin being shut down from Aave’s V2 Ethereum marketplace.
Next, Zeller plans to release another AIP that will undergo a governance vote. If approved, changes will be implemented in the Aave smart contract, mainly regarding the cost of borrowing and interest on borrowing in BUSD.
Aave isn’t the only big name in the cryptocurrency ecosystem planning to cut ties with Binance’s stablecoin. Coinbase (NASDAQ:) has announced plans to delist Binance USD, saying the token does not meet listing standards.
The cryptocurrency exchange will close trading for the Paxos-issued stablecoin on March 13, while withdrawals will continue afterward, according to previous reports.
By CriptoFacil