Aave stake module Umbrella launched, protocol Risk Management enters a new phase.

CryptoParadise · 2025-06-08T13:22:14+00:00

The founder of Aave stated that the new staking module Umbrella has brought about a transformation, and the Aave protocol will utilize the aTokens staked by users to increase yields and allocate coverage amounts for the staking pool to drop risks. Aave V4 will further enhance Risk Management, prioritizing user safety.

CryptoParadise

2025-06-08 13:22:14

Abstract generation in progress

The founder of Aave posted on the social platform that the impact of the new Aave staking module Umbrella has been reflected, and the Aave protocol is changing from using AAVE as the last excess debt support to generating additional income by using the aTokens provided by users through Umbrella staking. In addition, the Aave DAO can be configured with a predefined covered amount for each staking pool, which in turn acts as the first line of defense for stakers’ funds, mitigating protocol risk by both the user and the Aave DAO without cutting any AAVE to achieve balance. Aave V4 will introduce more risk management features, and the community will still prioritize user safety compared to other protocols that focus on taking risks and increasing tail risk.

AAVE0,37%

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