very cool
this is basically dividing aave into junior and senior tranches
locked $aUSDC holders get higher apy for a bit more risk
yield amplification for fixed duration assets is gonna be a bigger trend in DeFi going forward
3 days from now, a massive safety upgrade goes live on @Aave.
Aave was already the best risk-adjusted venue for your assets and positions. After this upgrade, we’ll be in a league of our own.
What you need to know to stay ahead:
1) aToken staking means you can be slashed and must commit for 20 days, but yields will be high (up to 12% on stables and 6% on wETH.
2) AAVE distributions will be significantly reduced, paired with ongoing buybacks. The protocol remains deeply token-flow positive.
3) StkGHO, as we know it, will be slowly deprecated: There will be no more AAVE rewards and no more lock-up. A streamlined umbrella vault will take the lead with a higher yield (but smaller target size), and a liquid sGHO deposit vault (with a smaller yield) will launch in a few weeks.
4) Bad debt is slashed automatically with no governance involved. Your deposits stay protected by stakers. Historically, LPs have earned $ 3,150 in yield for every $1 of bad debt in Aave. There’s still risk staking in the umbrella vault, but I’ll be putting my own money there.
TL;DR: Higher overall yields, fewer AAVE tokens distributed, lower DAO spending, and broader user coverage with a more efficient system.
Just Use Aave.

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