The Aave community initiated a proposal to introduce sDAI as a collateral asset in Aave V3

ChainCatcher message, Aave has published an ARFC proposal on the governance forum regarding "Introducing sDAI as a collateral asset in the Aave V3 Ethereum pool," aiming to create new synergies with the MakerDAO ecosystem. The proposal states that by using the liquidity DSR deposit token (sDAI) as collateral in the Aave V3 Ethereum pool, Aave can provide users with the dual benefits of earning DSR yields while utilizing their assets as collateral.

If the proposal is approved, both sDAI and DAI will serve as reserve assets in the Aave V3 Ethereum pool, with sDAI primarily used as collateral and DAI as the borrowable asset.