Hassan Maishera
On Monday, Aave Labs announced via X that the Aave v3.3 upgrade from bgdlabs is live. This upgrade introduces changes in managing bad debt and liquidations, setting the stage for Umbrella.
Umbrella aims to replace Aave’s current Safety Module with an automated system that uses staked aTokens to absorb bad debt—removing the need for governance intervention. To achieve this, Umbrella will allow users (with no borrow) to stake aTokens to earn rewards for contributing to the safety of the protocol.
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 $204.78 per token, down 14% in the last 24 hours.
