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Aave Advances Plan to Nix Borrowing, Lending of Binance’s BUSD Stablecoin

Decentralized lending protocol Aave moved closer to delisting troubled stablecoin BUSD Thursday after a roadmap for executing the plan cleared a procedural hurdle.

Members of Aave’s decentralized autonomous organization (DAO) voted overwhelmingly in favor of a proposal to dramatically increase the cost of borrowing BUSD, while decreasing the revenue accrued by its lenders, according to its author, Marc Zeller. Those actions are intended to disincentivize use of BUSD.

The vote comes as a growing list of market participants have backed away from Binance’s dollar-pegged stablecoin amid regulatory uncertainty. Zeller wrote in his proposal that the circulating supply of BUSD will trend “towards zero over time,” making its offboarding necessary.

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