Aave, a decentralized lending platform, has made progress towards removing the troubled stablecoin BUSD from its platform.
A proposal to increase borrowing costs and reduce revenue for lenders of BUSD was overwhelmingly supported by members of Aave's decentralized autonomous organization. The aim of these changes is to discourage the use of BUSD and encourage users to switch to other stablecoins. Marc Zeller, the author of the proposal, advised users to switch to other stablecoins.
The move to delist BUSD comes amid regulatory uncertainty and a decrease in market participants using the stablecoin. Zeller suggests that the supply of BUSD will eventually trend towards zero, making its removal necessary.