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Aave, the leading decentralized lending protocol, has proposed urgent measures to reduce its exposure to Scroll’s ecosystem following governance instability within the layer-2 network’s DAO. The proposal includes raising reserve factors and lowering supply caps to protect user funds. This move comes as Scroll pauses new governance proposals to redesign its DAO structure.
- Aave proposes raising reserve factors to 90% and cutting supply/borrowing caps on Scroll to protect $6M TVL
- Scroll paused new DAO proposals after lead delegate resignation and governance turbulence stalled key initiatives
- Scroll's governance redesign aims to create more efficient structure while safeguarding short-term stability
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