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Aave DAO members propose the cancellation of Binance’s BUSD loan

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It is reported that members of the Aave Decentralized Autonomous Organization (DAO) supported the cancellation of the loan of Binance\’s BUSD stable currency wi…

Aave DAO members propose the cancellation of Binances BUSD loan

It is reported that members of the Aave Decentralized Autonomous Organization (DAO) supported the cancellation of the loan of Binance’s BUSD stable currency with overwhelming advantages. The proposal aims to significantly increase the cost of borrowing BUSD and reduce the accrued income of its lenders. These actions are intended to curb the use of BUSD. At the time of voting, more and more market participants abandoned BUSD under the circumstances of regulatory uncertainty. Zeller, the author of the proposal, wrote in the proposal that the circulation supply of BUSD will “tend to zero over time”, so it is necessary to take it off the shelf.

Aave’s proposal to cancel the BUSD stable currency loan was supported by the DAO members

Analysis based on this information:


Recently, members of the Aave Decentralized Autonomous Organization (DAO) proposed to cancel the loan of Binance’s BUSD stable currency with overwhelming advantages. This proposal aims to significantly increase the cost of borrowing BUSD and reduce the accrued income of its lenders, ultimately to curb the use of BUSD. At the time of voting, market participants were abandoning BUSD due to regulatory uncertainty. This proposal was put forth by Zeller, who wrote that the circulation supply of BUSD would “tend to zero over time,” which is why it is necessary to take it off the shelf.

This proposal by Aave DAO members is a significant move to decrease the usage of BUSD. BUSD is Binance’s USD-backed stablecoin and is used widely in the crypto industry. However, there has been a recent regulatory crackdown on stablecoins by the United States, causing market participants to lose confidence in BUSD. There is still uncertainty about how regulations would affect BUSD and other stablecoins, which led to the shift away from it. Cancellation of the loan of BUSD by Aave DAO members could be one of the steps to reduce the risk associated with BUSD usage.

The proposal by Aave DAO members aims to control the cost of borrowing BUSD, making it less profitable for lenders. The high cost would make BUSD less attractive for lending and borrowing, reducing the circulation and usage of BUSD. This reduction in usage will ultimately lead to a decrease in the supply of BUSD over time, as mentioned in the proposal. Zeller, the author of the proposal, calls for taking BUSD off the shelf since its demand will eventually drop to zero.

In summary, the Aave DAO members’ proposal to cancel the loan of BUSD is a significant step towards reducing BUSD’s usage, primarily due to the regulatory uncertainty surrounding stablecoins. Zeller’s assertion that the supply of BUSD will tend to zero over time is a strong statement indicating that the demand for BUSD is likely to decrease drastically. While the proposal may not come into immediate effect, its implications could shape the future of BUSD usage in the crypto industry.

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