[Aave Passes Proposal to Remove USDS Collateral Eligibility and Increase Reserve Factor to 25%] The Aave community has passed a proposal to remove USDS collateral eligibility (reducing LTV to 0), exclude it from e-Mode, and increase the reserve factor from 10% to 25%. The proposal is currently awaiting final execution via AIP. This adjustment is due to declining USDS yield contributions, low collateral utilization, and potential risks in its issuance mechanism. MakerDAO founder Rune responded, stating that the proposal misunderstands the borrowing methods of Stars like Spark and Grove from Sky. He also mentioned that if Sky improves transparency and scalability in the future through DataHub, Grove, and Sentinel Network, USDS could still return to Aave's list of collateral assets.