# State of DeFi Leverage: Jan'24 By [Lucidity Finance](https://paragraph.com/@lucidityfinance) · 2024-02-04 --- 2024 started strong for DeFi, with a mix of events through the first month. Restaking was one of the strongest narratives within the sector witnessing over $1.7B worth of inflows. ![Source: DeFiLlama](https://storage.googleapis.com/papyrus_images/afd377b6dfce89a35f0de0e712e50831a2aec72e1f1f885f4d5ccd503f53f521.png) Source: DeFiLlama There were multiple developments within the leverage landscape throughout the month. * Starting with MakerDAO passing two [executive votes](https://vote.makerdao.com/executive), with the key highlight being an increase of Spark’s DAI debt ceiling from 800M to 1.2B. * Morpho labs continued to ship, with Blockanalytica together with B.protocol [co-curated](https://twitter.com/BlockAnalitica/status/1749831878532600218) a flagship USDC vault on Metamorpho, and the [transfer of ownership](https://forum.morpho.org/t/mip-morpho-dao-as-owner-of-morpho-blue/409) to Morpho DAO. * Euler launched [Ethereum Vault Connector](https://x.com/eulerfinance/status/1745433647078134029), to connect ERC4626 with other vault types, and support the development of lending protocols, stablecoins, yield aggregators, margin trading apps, etc. * Chainlink proposed building the [DeFi Yield Index](https://pages.chain.link/hubfs/e/the-need-for-a-chainlink-defi-yield-index-january-2024.pdf) for lending rates for 4 largest assets * Curve [hinted](https://x.com/CurveFinance/status/1750572090942533790) at launching LlamaLend **Stablecoins** * One of the key events this month was [USDC filing for an IPO](https://www.theblock.co/post/271907/usdc-stablecoin-circle-ipo). The stablecoin giant’s step will be a major headwind for the web3, especially the DeFi ecosystem. It can be particularly beneficial for the growth of Maker, USDC’s biggest decentralised competitor. * Growth of PYUSD (Paypal’s stablecoin) within DeFi also [made noise](https://www.coindesk.com/markets/2024/01/10/paypals-stablecoin-part-of-third-largest-liquidity-pool-on-curve/) - with FRAXPYUSD becoming one of the largest pools on Curve with competitive yields. * Parallelly, there were multiple developments within the decentralised stables ecosystem, starting with Aave labs [proposing](https://x.com/aave/status/1747663894049653137) the integration of GHO across multiple networks, which was followed by a GHO hackathon that saw 777 participants. * LUSD’s presence also continued to expand, getting [integrated on Wirex](https://wirexapp.com/blog/post/now-live-in-the-wirex-app-lusd-0858). **Security incidents** * Radiant capital, a leading lending protocol on Arbitrum and BSC suffered a [flash loan attack](https://twitter.com/RDNTCapital/status/1742638364933714112) worth $4.5M in the first week of Jan. The DAO [proposed](https://dao.radiant.capital/#/proposal/0xf2d9cd62d0d8efd792967e7d4b36cd3b1d08718b75c3916116eeb133c9f80008) to deal with the same through recapitalisation and debt resolution using the DAO treasury. Radiant soon introduced its v3 in the very next [proposal](https://dao.radiant.capital/#/proposal/0x349c3a829823d5fb22a2e1a8e3a48c2a844b90a96680d9b262b932c0ee447088). --- *Originally published on [Lucidity Finance](https://paragraph.com/@lucidityfinance/state-of-defi-leverage-jan-24-4)*