According to Foresight News, Aave has initiated a community proposal for its version 2 (v2) on Ethereum to abandon smaller stablecoins. The proposal includes the discontinuation of USDP, GUSD, LUSD, FRAX, and sUSD.
The plan also suggests an increase in the annual interest rate for borrowers to encourage loan repayments. Additionally, a freeze is proposed to prevent new supplies and loans. This move is part of Aave's strategy to streamline its operations and focus on larger, more stable cryptocurrencies.
The proposal is currently under community review, and the final decision will be based on the consensus of the Aave community. The proposed changes, if approved, could significantly impact the smaller stablecoin market on the Ethereum platform.
