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Aave’s new Umbrella staking system went live yesterday, replacing the protocol’s once-theoretical insurance model with an onchain, automated safety net tied directly to individual assets. 

The USDC and USDT vaults currently have yields greater than 10% on offer. But for GHO — Aave’s bespoke stablecoin — a mismatched reward structure is creating an odd dynamic for GHO holders in search of yield.

Since 2020, Aave’s Safety Module (SM) has served as a kind of backstop — stkAAVE and AAVE-ETH LPs (stkABPT) could be slashed in theory, but governance votes and political incentives…

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