Aave’s two Ethereum V3 Umbrella stablecoin backstops fell by $12.43 million between Sept. 17 and Oct. 17, declining from $128.52 million to $116.09 million, a 9.67% drop. USDC stakes fell by $5.30 million and USDT stakes by $7.13 million. Paradoxically, the extra reward rates increased, rising from 1.66% to 1.82% for USDC and from 1.46% to 1.63% for USDT. The implied annualized reward amount remained stable at approximately $1.994 million at both observation points. This mechanism is explained by Umbrella’s emission curve: with less staked capital, the same reward pool is distributed across a smaller denominator, increasing the per-unit rate without changing the aggregate amount.
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