🛡️ Aave V4 Proposal: DAO to Absorb Lending Losses First
TokenLogic has introduced the "Umbrella" proposal for Aave V4 on Ethereum, designed to protect lenders from bad debt. Under this plan, the Aave DAO would be the first layer of defense, absorbing initial losses before any other funds are touched.
The proposal specifically covers WETH, USDC, and USDT within the Core liquidity Hub. The DAO is set to provide "deficit offsets" of 33 ETH, 15,000 USDC, and 15,000 USDT to cover immediate gaps if a liquidation fails to clear a borrower's debt.
Volunteer underwriters can also participate to reach targets of 800 ETH and 400,000 for each stablecoin. These participants earn extra rewards but face a 20-day cooldown period and a narrow 2-day window to withdraw their capital. Assets remain at risk of slashing during the cooldown.
#Aave #DeFi #Ethereum #CryptoNews
TokenLogic has introduced the "Umbrella" proposal for Aave V4 on Ethereum, designed to protect lenders from bad debt. Under this plan, the Aave DAO would be the first layer of defense, absorbing initial losses before any other funds are touched.
The proposal specifically covers WETH, USDC, and USDT within the Core liquidity Hub. The DAO is set to provide "deficit offsets" of 33 ETH, 15,000 USDC, and 15,000 USDT to cover immediate gaps if a liquidation fails to clear a borrower's debt.
Volunteer underwriters can also participate to reach targets of 800 ETH and 400,000 for each stablecoin. These participants earn extra rewards but face a 20-day cooldown period and a narrow 2-day window to withdraw their capital. Assets remain at risk of slashing during the cooldown.
#Aave #DeFi #Ethereum #CryptoNews