Aave V4 proposal would introduce 800 ETH Umbrella loss protection
- —Umbrella target liquidity: 800 ETH, 400,000 USDC, 400,000 USDT
- —DAO deficit offset: 33 ETH, 15,000 USDC and 15,000 USDT
- —Losses above the limit are covered by independent capital providers
- —The ARFC vote on September 15 has not concluded
Why it matters: The new mechanism shifts bad-debt risk onto capital providers, changing the risk profile for Aave V4 lenders.
Source: TokenPost