MakerDAO said on Thursday it will disable direct deposits with peer Aave due to the latter’s high exposure to a potential Celsius liquidation.
The move was bought up in a governance proposal that was approved by the MakerDAO community, and is set to be executed on June 17.
MakerDAO, which is the largest DeFi platform by total value locked (TVL), said the proposal was to reduce a potential risk from Aave’s exposure to beleaguered crypto lender Celsius.
Celsius recently suspended withdrawals due to a liquidity crunch stemming from a tumble in Lido-Staked Ethereum (stETH) prices.
MakerDAO sees a risk from Celsius
Celsius has borrowed about $100 million from the $200 million lent on the Aave-Maker portal. The loan is collateralized by stETH, and is denominated in the DAI stablecoin.
