According to Foresight News, the Aave Chan Initiative (ACI) has proposed an ARFC to update DAI stablecoin risk parameters in the Aave community. The proposal aims to achieve this by setting all Aave deployments' LTV to 0% and removing the sDAI booster from the Merit plan, which will be effective for the second round of Merit and subsequent rounds.
The proposal states that MakerDAO's recent proactive actions on the D3M plan have led to a significant increase in DAI's 'D3M' credit line, growing from 0 to an estimated 600 million DAI in less than a month. As the credit line may expand to 1 billion DAI in the short term, the unpredictability of MakerDAO's future governance decisions has raised concerns about the inherent risk nature of DAI as collateral.