How does AAVE staking in the Safety Module work?

[cryptohog]

Advanced users often use AAVE’s Safety Module (SM) to earn rewards while contributing to protocol security. Here’s how it works:

Deposit AAVE into SM: Your tokens backstop the protocol against shortfalls.

Earn Rewards: You receive staking rewards in AAVE, which vary depending on protocol utilization.

Risk Considerations: In extreme scenarios, a portion of staked AAVE may be slashed to cover deficits.

Withdrawal Timing: SM withdrawals have a cooldown period, so liquidity planning is key.

Tip: Advanced users often stagger deposits and withdrawals to balance yield with liquidity needs and risk exposure.

[johnblockbuster]

Cool that you can earn AAVE for helping out, just don’t forget about the slashing risk