Two Aave stablecoin backstops shrank $12.4 million as reward rates rose

Aave’s two tracked Ethereum V3 stablecoin backstops shrank by $12.4 million between Sept. 17 and Oct. 17 even as their extra reward rates increased. Together, the USDC and USDT positions held $116.09 million at the later observation, down 9.67% from $128.52 million. The positions belong to Umbrella, Aave’s system for using staked assets to absorb lending deficits. Participants keep earning underlying lending yield and receive additional rewards for accepting the possibility that their stakes will be used to cover losses. The figures measure dollar-valued stakes.

Source: CryptoSlate