Wallfacer Weekly (#12)Welcome back to our weekly newsletter!MakerDAO proposes lowering DSR yet again📰 Story: The @MakerDAO risk team has proposed another round of rate cuts, recommending a 2% decrease across all major vaults and the Dai Savings Rate (DSR). If approved, this would bring the DSR down to 8%, a significant drop from the 15% peak seen in early March. The proposal aims to reverse the declines in borrowing activity and $DAI supply observed on @sparkdotfi since the March hike, and to reduce sDAI and DSR expenses. The current proposal comes as the external rate environment continues to trend downward, with both CeFi and DeFi lending rates on the decline, prompting the need for further adjustments to maintain competitiveness.APY history of leading DeFi vaults, as seen on @vaultsfyi. 💡 Our Take: MakerDAO's latest proposal to lower rates across the board demonstrates the protocol's ongoing efforts to navigate the challenging market conditions and maintain its position as a leading DeFi lending platform. While the progressive rate cuts may be necessary to remain competitive, it's crucial for MakerDAO to carefully consider the long-term implications of these decisions, as continuously lowering rates could potentially impact the protocol's revenue generation and its ability to maintain a stable peg for DAI. As with any DeFi protocol, MakerDAO will need to adapt its strategies to ensure long-term sustainability and growthBybit to integrate USDe as collateral 📰 Story: @Bybit_Official, a major cryptocurrency exchange, has announced a partnership with @ethena_labs to integrate $USDe as a collateral asset for trading perpetual futures, as well as in spot trading pairs for $BTC and $ETH. This integration will allow users to earn yield and enhance capital efficiency by using USDe as collateral. @leptokurtic_, founder of Ethena Labs, emphasized the significance of this integration in driving use cases for USDe, stating that it will unlock the next wave of growth for the stablecoin and challenge the existing stablecoin hegemony.💡 Our Take: The integration of USDe into Bybit's ecosystem is yet another testament to the rapid adoption of USDe in crypto. Bybit's endorsement of USDe is expected to further accelerate its growth and solidify its position as a viable alternative to traditional stablecoins. This development, coupled with MakerDAO's recent moves to allocate significant amounts of DAI to Ethena's sUSDe, underscores the growing confidence in USDe's potential to reshape the DeFi landscape. As USDe continues to gain traction, we anticipate seeing more platforms and protocols embrace it as a collateral asset and trading pair, ultimately leading to increased liquidity and capital efficiency in the DeFi ecosystem. As always, it is crucial to remain vigilant regarding the potential systemic risks associated with the rapid growth of USDe.AlphaGrowth seeks funding from Compound📰 Story: @alphagrowth1 has proposed the renewal of the Compound Growth program for a 12-month tenure, highlighting the successes achieved during the 4-month trial phase, such as launching Compound on the @Optimism network, securing grants, and initiating the launch of $USDT markets on multiple chains. The proposal outlines key priorities for growth, including TVL expansion, treasury growth, market development, chain expansion, strategic partnerships, user acquisition, and infrastructure expansions. AlphaGrowth breaks down their budget request into nine essential components, with a total ask of 75,246 $COMP (roughly $4,330,000 today) over the 12-month period.💡 Our Take: As we discussed in our previous newsletter, the DeFi lending landscape is evolving, with alternative lending protocols like Compound, Spark, Morpho, and Ajna gaining traction and offering competitive rates. AlphaGrowth's proposal aligns with this trend and could further drive growth. Despite this, the significant investment of 75,246 COMP raises questions about the potential return on investment for @compoundfinance. Ultimately, these funding decisions should be based on a cost-benefit analysis, which may not align with Compound's strategic priorities.Updates from vaultsfyi📰 Story: We've recently unveiled a redesign of @vaultsfyi, including a new logo that better reflects our growing ambitions. The updated design aims to provide a more intuitive and streamlined user experience as we continue to build the platform. In addition to these visual updates, we've also integrated the @MoonwellDeFi protocol, allowing users to track and compare yields across an even wider range of DeFi opportunities.Moonwell’s vaults, as seen on the redesigned @vaultsfyi.💡 Our Take: While the changes to @vaultsfyi may seem minimal at first glance, they represent a significant shift in our long-term vision. As DeFi continues to mature, we recognize the need for a central hub that can help users navigate the complexities of onchain yield. By outgrowing our old emoji logo and implementing a more professional design, we are signaling our commitment to becoming that hub – the homepage of onchain yield. As we continue to integrate more protocols and refine our platform's features, we believe that @vaultsfyi will play an increasingly vital role in the DeFi ecosystem.