MakerDAO has approved a governance vote to expand its direct deposit module’s debt ceiling to $1 billion for its Dai stablecoin, focusing on investments in Ethena’s USDe and its staked counterpart, sUSDe, through Morpho Labs’ lending vaults.

This adjustment is part of a broader strategy to diversify MakerDAO’s collateral exposure — marking a major financial engagement with Ethena's stablecoin and also allowing the protocol to earn additional yields for users.

An initial $600 million from MakerDAO’s Dai holdings will be allocated to these lending markets, underlining the protocol’s commitment to Ethena’s USDe. This move is facilitated using MakerDAO’s Spark protocol, with a preference for allocations to USDe pools over those for sUSDe.

USDe, distinct from traditional stablecoins, …