Aave

Due to the AAVE buyback program, all AAVE holders have an exposure to deflationary appreciation of the token due to continuous supply reduction. The specifics are available in the Original proposal.

Reflects participation in the governance process (act of voting) in order to derive value from influencing Aave DAO operation.

Reflects the value originating from participating in decicision-making in Aave Dao. The scope of governance includes protocol deployment decisions, parameter adjustment, and design of new or reworked protocol infrastructure units (e.g., the recent rework of the safety module into Umbrella).

Reflects the staking of AAVE into the Safety Module (now being phased out in favour of Umbrella, which was launched in June 2025 and allows for staking of aTokens instead). This staking is associated with a cooldown period of 20 days between requesting and performing the withdrawal.

Whilst staked, the tokens are subject to slashing of up to 20% of the staked assets. Slashing occurs in the case of an event leading to emergence of bad debt that needs to be covered.

The legacy Safety Module is going to be active until Umbrella reaches sufficient scale.

It reflects the accrual of yield on the staked AAVE, which is meant to incentivize Safety Module staking.

Now that Umbrella is live, the slashing risk (the slashable portion of the stake) and the associated APY will gradually decrease for the legacy Module, as well as for the stkAAVE, which has no Umbrella equivalent. As of 07/27/25, the APY is 3.94%, and daily emissions are 315 AAVE.