Aave launches new staking module Umbrella: enhances risk management without reducing AAVE Token

According to reports, Aave founder Stani Kulechov stated that the impact of the new Aave staking module Umbrella has already been reflected. The Aave protocol is transitioning from using AAVE as the last line of excess debt support to utilizing aTokens generated by users’ staking through Umbrella to create additional revenue. Moreover, the Aave DAO can configure a predefined coverage amount for each staking pool, serving as the first line of defense for stakers’ funds, thereby allowing both users and the Aave DAO to mitigate protocol risks without having to cut any AAVE to achieve balance. Aave V4 will introduce more risk management features, and compared to other protocols that focus on taking risks and increasing tail risks, the community will still prioritize user safety.