Two Aave stablecoin backstops shrank $12.4 million as reward rates rose
Aave’s tracked Ethereum V3 Umbrella USDC and USDT stakes fell by $12.43 million, or 9.67%, from $128.52 million on Sept. 17 to $116.09 million on Oct. 17, 2026. Over the same period, their extra reward rates rose by 0.16 and 0.17 percentage points. Multiplying stake values by those rates yields nearly unchanged indicative annualized rewards of about $1.994 million at both dates. Because the balances are dollar-valued snapshots, the decline does not establish withdrawals or losses. Aave’s reward mechanism can allow rates per unit of stake to rise as aggregate emissions remain similar, but the available histories do not establish that this mechanism explains the change. The two stakes cover their respective reserves and remain exposed to slashing after a reserve deficit exceeds its DAO-funded offset.
