The post Aave snubs Sky’s USDS as collateral and 3 ‘underperforming’ chains appeared on BitcoinEthereumNews.com. Following a Snapshot vote, Aave governance looks set to remove Sky’s USDS as collateral. Another vote, in progress, suggests shutting down “underperforming” instances on three chains. Both proposals were brought forward by Aave governance delegation ACI. The first proposal, which passed with 99.5% approval, says USDS “generates negligible revenue while its issuance model introduces asymmetric risks.” As well as disabling its use as collateral, the proposal recommends increasing USDS’s reserve factor (the proportion of borrower interest paid to Aave’s treasury) to 25% and removing it from the higher efficiency “e-Mode” for correlated assets. Aave is a crypto lending platform and the DeFi sector’s largest protocol, with $33 billion of total value locked (TVL). Sky, formerly Maker, is the issuer of stablecoins USDS and (previously) DAI, which is likely next in the firing line. Yes following recommendation of risk teams dai will follow. — Marc ”七十 Billy” Zeller 👻 🦇🔊 (@Marczeller) December 2, 2025 Read more: Is Aave’s ‘Balance Protection’ backed by Relm — an FTX insurer? GFX Labs’ Paper Imperium called the vote a “reputational blow for Maker/Sky,” while Sky founder Rune Christensen believes there were “misunderstandings” over certain mechanics of the Sky ecosystem. ‘Underperforming’ instances A second vote, a “temperature check” on paring down Aave v3 instances, is currently underway, with YAE votes sitting at 99.9%. It recommends focusing on chains “which present the highest opportunity for revenue generation.” The post suggests winding down Aave’s v3 instances on zkSync, Metis, and Soneium instances. It argues that, of Aave v3’s $175 million annualized revenue, the three deployments combined contribute just $76,000 and represent just 0.05% of total TVL. It also recommends upping reserve factors to “improve revenue on instances which are currently underperforming,” in order to “offset the costs and risks they incur.” For future deployments, the proposal suggests a… The post Aave snubs Sky’s USDS as collateral and 3 ‘underperforming’ chains appeared on BitcoinEthereumNews.com. Following a Snapshot vote, Aave governance looks set to remove Sky’s USDS as collateral. Another vote, in progress, suggests shutting down “underperforming” instances on three chains. Both proposals were brought forward by Aave governance delegation ACI. The first proposal, which passed with 99.5% approval, says USDS “generates negligible revenue while its issuance model introduces asymmetric risks.” As well as disabling its use as collateral, the proposal recommends increasing USDS’s reserve factor (the proportion of borrower interest paid to Aave’s treasury) to 25% and removing it from the higher efficiency “e-Mode” for correlated assets. Aave is a crypto lending platform and the DeFi sector’s largest protocol, with $33 billion of total value locked (TVL). Sky, formerly Maker, is the issuer of stablecoins USDS and (previously) DAI, which is likely next in the firing line. Yes following recommendation of risk teams dai will follow. — Marc ”七十 Billy” Zeller 👻 🦇🔊 (@Marczeller) December 2, 2025 Read more: Is Aave’s ‘Balance Protection’ backed by Relm — an FTX insurer? GFX Labs’ Paper Imperium called the vote a “reputational blow for Maker/Sky,” while Sky founder Rune Christensen believes there were “misunderstandings” over certain mechanics of the Sky ecosystem. ‘Underperforming’ instances A second vote, a “temperature check” on paring down Aave v3 instances, is currently underway, with YAE votes sitting at 99.9%. It recommends focusing on chains “which present the highest opportunity for revenue generation.” The post suggests winding down Aave’s v3 instances on zkSync, Metis, and Soneium instances. It argues that, of Aave v3’s $175 million annualized revenue, the three deployments combined contribute just $76,000 and represent just 0.05% of total TVL. It also recommends upping reserve factors to “improve revenue on instances which are currently underperforming,” in order to “offset the costs and risks they incur.” For future deployments, the proposal suggests a…

                                                                               Wormhole’s native token has had a tough time since launch, debuting at $1.66 before dropping significantly despite the general crypto market’s bull cycle.                     Wormhole, an interoperability protocol facilitating asset transfers between blockchains, announced updated tokenomics to its native Wormhole (W) token, including a token reserve and more yield for stakers. The changes could affect the protocol’s governance, as staked Wormhole tokens allocate voting power to delegates.According to a Wednesday announcement, three main changes are coming to the Wormhole token: a W reserve funded with protocol fees and revenue, a 4% base yield for staking with higher rewards for active ecosystem participants, and a change from bulk unlocks to biweekly unlocks.“The goal of Wormhole Contributors is to significantly expand the asset transfer and messaging volume that Wormhole facilitates over the next 1-2 years,” the protocol said. According to Wormhole, more tokens will be locked as adoption takes place and revenue filters back to the company.Read more