The decentralized finance (DeFi) landscape is witnessing yet another clash, this time between MakerDAO and Aave DAO. The conflict centers around MakerDAO’s lending protocol, Spark, and its alleged breach of a profit-sharing agreement with Aave DAO.
Background of the Conflict
Aave DAO has accused MakerDAO’s Spark of engaging in “creative accounting,” resulting in a significantly lower revenue share than agreed upon. According to Marc Zeller, a prominent representative from Aave DAO, the actual revenue share MakerDAO provided was closer to 1% instead of the expected amount. This has stirred up considerable tension within the DeFi community.
Details of the Dispute
The conflict took a public turn when Aave reduced its loan-to-value requirements for DAI, MakerDAO’s stablecoin, after it gained indirect exposure to Ethena’s USDe. This move has reignited concerns over the stability and reliability of DAI, further complicating the relationship between the two DAOs.
Moreover, a recent proposal by Zeller suggests labeling Spark as a non-aligned protocol, effectively isolating it from Aave DAO’s benefits. This proposal has fueled fears of creating ‘DeFi walled gardens,’ where protocols operate in silos rather than fostering an open, collaborative ecosystem.
Implications for the DeFi Ecosystem
This ongoing dispute highlights the fragile nature of partnerships within the DeFi space. As protocols like MakerDAO and Aave continue to evolve, their interactions and agreements become increasingly complex. This conflict could set a precedent for how similar disputes are handled in the future, potentially influencing the governance models and collaboration strategies of other DeFi projects.
