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

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.

Interpretation of this information:

The Aave Decentralized Autonomous Organization (DAO) recently voted to support the cancellation of a loan of Binance’s BUSD stable currency. The goal of this proposal is to increase the cost of borrowing BUSD and decrease the amount of money earned by BUSD lenders. This is an attempt to limit the use of BUSD as more market participants are abandoning it due to regulatory uncertainty. The author of the proposal, Zeller, believes that the circulation supply of BUSD will eventually decrease to zero, and therefore it should be taken off the shelf.

This news comes as a surprise to many in the cryptocurrency world, as BUSD has been a popular stable coin due to its close relationship with the Binance exchange. However, as regulatory uncertainty increases, more and more traders and investors are seeking alternatives to BUSD. The Aave DAO’s support of Zeller’s proposal is a significant blow to the reputation of BUSD and could potentially lead to its demise.

The cancellation of the loan and the increase in borrowing costs are expected to deter the use of BUSD and cause its circulation supply to decrease over time. This is a significant departure from the previously bullish sentiment surrounding BUSD, which was seen as an excellent alternative to other stable coins due to its close ties to Binance.

In conclusion, the Aave DAO’s support of the cancellation of Binance’s BUSD stable currency loan signals a significant shift in the cryptocurrency world. This move is aimed at reducing the use of BUSD as more and more market participants abandon it due to regulatory uncertainty. Zeller’s proposal to take BUSD off the shelf may lead to its demise.