With over $285M in coverage, Aave is by far the most secure lending protocol in DeFi.
Umbrella shields the protocol in real time from bad debt on $ETH, $USDC, $USDT, and $GHO.
Together, $ETH, $USDC, and $USDT represent 87% of total borrowings on the Core instance, which is why they were selected for Umbrella coverage.
Bad debt is one of the biggest threats for any lending protocol.
Without proper protection, it can completely collapse and never recover, as this kind of failure breaks trust and damages the platform’s reputation.
Aave and Gearbox are the only protocols that have funds allocate for protecting users, with Umbrella being the first fully automate system built by @bgdlabs.
Its coverage is 2.5x larger than the combined treasuries of Morpho and Euler.
No other protocol comes close to this level of protection.
And the best part? It is fully funded by over $100M in real, organic protocol revenue, with an annual budget of $9.1M.
In return, users who deposit earn juicy yields. For example, stkaUSDT is currently yielding 9.9%.
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