PANews reported on December 4th that Aave DAO passed a proposal to set the loan-to-value (LTV) ratio of USDS to DAI to 0% and increase the risk reserve ratio (RF) to 25% in all Aave V3 instances. The proposal states that USDS's profitability has declined and its issuance model carries asymmetric risks, making it unsuitable as collateral. MakerDAO founder Rune responded that there is a misunderstanding regarding the lending logic of the Sky ecosystem, and that USDS is expected to regain its collateral eligibility in the future as transparency and scalability improve.