$AAVE Umbrella Backstops Aave’s stablecoin safety layer is shrinking — even as rewards rise. Aave’s Ethereum V3 Umbrella backstops for USDC and USDT fell by $12.4M in one month: from $128.52M to $116.09M. USDC stake: $58.74M → $53.44M USDT stake: $69.78M → $62.66M At the same time, extra reward rates rose — USDC to 1.82% and USDT to 1.63%. Why? Fewer staked assets can mean the same reward pool is shared across less capital, pushing the percentage rate higher. It is not automatically a crisis — but less protection capital during volatile markets is worth watching. #Aave #DeFi #USDC #USDT #Stablecoins Not financial advice.