Aave Founder: V4 to Introduce More Risk Management Features, New Staking Module Umbrella Already Showing Results

Stani Kulechov, the founder of Aave, stated on the X platform that the impact of the new Aave staking module Umbrella is already evident. The Aave protocol is transitioning from using AAVE as the ultimate excess debt support to generating additional yield through aTokens provided by users staking via Umbrella. Additionally, the Aave DAO can configure a predefined coverage amount for each staking pool, serving as the first line of defense for stakers' funds, achieving a balance by allowing both users and the Aave DAO to mitigate protocol risk without slashing any AAVE. Aave V4 will introduce more risk management features, and compared to other protocols that focus on taking risks and increasing tail risks, the community will still prioritize user safety.