MakerDAO halts Aave–DAI direct deposit due to concerns over risk

MakerDAO voted to disable the Aave—DAI direct deposit module, which previously allowed users to mint DAI (MakerDAO's stablecoin) and deposit it into the Aave lending protocol. According to a MakerDAO team member, 100 million of the 200 million DAI borrowed on the Aave project is borrowed by Celsius and collateralized primarily by stETH. Celsius paused withdrawals several days before MakerDAO's decision, and is apparently underwater. stETH is Lido-staked Ether, which also has been encountering issues amidst the market downturn and heightened withdrawal pressures.

The same MakerDAO team member wrote in the forum that "Contagion risks in DeFi are increasing", and that the project wanted to "cut exposure" to projects that were in trouble. "We could be dealing with Lehman's moment in crypto," he wrote.