Aave’s New Safety Module, Umbrella, is Now Live

On Thursday, Aave Labs announced via X that Aave’s new Safety Module, Umbrella, is now live. Umbrella introduces aToken staking, making it easier to manage risk and avoid bad debt without relying on governance.

For users, this deployment introduces a new Umbrella tab to the app, where users can stake their aTokens. Staking aTokens allocates a user's supplied assets to Umbrella, provided there are no outstanding borrows against those assets.

While staked with Umbrella, users earn rewards for contributing to the risk management of Aave. Aave added that no action is required at this time for users with staked AAVE, staked GHO, or staked APBT.

Aave protocol is a decentralized, open-source, and non-custodial money market protocol. Depositors earn interest by providing liquidity to lending pools, while borrowers can obtain overcollateralized loans by using the liquidity from these pools. AAVE is trading at $243.21 per token, down 8% in the last 24 hours.

The content is for reference only, not a solicitation or offer. No investment, tax, or legal advice provided. See Disclaimer for more risks disclosure.
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