Peter

Breaking Down Aave’s $3,150:$1 Yield Ratio Ahead of the Umbrella Upgrade

The protocol Aave has long been a cornerstone of lending and borrowing, but a recent statement from Marc Zeller, founder of Aave Chan Initiative (ACI), has captured attention: “Historically, LPs have earned $3,150 in yield for every $1 of bad debt in Aave”.https://x.com/lemiscate/status/1929444141508764025This striking risk-reward ratio underscores the strength of Aave’s Safety Module (SM), especially as the protocol prepares for a transformative upgrade on June 5, 2025. What does this ratio ...