The once-cooperative relationship between MakerDAO and Aave (CRYPTO:AAVE) faces strain as DAI's (CRYPTO:DAI) perceived risk escalates due to its exposure to Ethena's USDe (CRYPTO:USDE).

Aave reduces its loan-to-value requirements for DAI after MakerDAO's stablecoin indirectly gains exposure to USDe.

This conflict reflects the evolving landscape of decentralised finance (DeFi) and highlights concerns about stability and competition within the sector.

Despite recent resolutions, the clash suggests ongoing dynamics between major protocols as they navigate the complexities of the DeFi ecosystem.