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DeFi Platform MakerDAO Pauses Some Aave-Related Lending Activity

  • Traders can no longer borrow DAI against stETH on Aave
  • Contagion risks in DeFi are increasing, MakerDAO member says
Crypto Loans On DeFi Increased 7.6% This Week To $29.40 Billion
Photographer: Gabby Jones/Bloomberg

MakerDAO, a long-established decentralized autonomous organization that supports the stablecoin DAI, has suspended the token from being deposited and minted in Aave’s crypto lending platform.

The organization cast the vote to disable the DAI Direct Deposit Module on Aave, which effectively prevents traders from borrowing the stablecoin against a troubled derivative token stETH, citing adverse market conditions in a post Friday.