MakerDAO has proposed a significant allocation of $600 million worth of DAI into USDe and sUSDe, sparking a debate within the DeFi community. Concerns have been raised about the potential risks associated with minting 1B $DAI, especially considering the allocation into a non-battle tested protocol with perceived inadequate risk mitigation measures and weak oracles in less than a month. In response, Aave has seen proposals to adjust its dealings with DAI, including a suggestion to remove DAI's collateral status to mitigate potential contagion risks, with the proposal now live. This move has led to discussions on whether these actions are aimed at optimizing risk parameters or if they represent a strategic shift towards horizontal scaling and competition within the DeFi space. DAI remains an asset that users are free to borrow, amidst suggestions for LTV reduction.