TokenLogic, a risk service provider for Aave, has proposed introducing the Umbrella bad debt protection mechanism for the WETH, USDC, and USDT markets on Aave V4 Ethereum Core Hub. The proposed coverage targets are 800 ETH, 400,000 USDC, and 400,000 USDT, respectively. According to the plan, in the event of bad debt, the first layer of losses will be borne by Aave DAO, with limits of 33 ETH, 15,000 USDC, and 15,000 USDT. Any excess losses will then be covered by voluntary Umbrella insurers. Insurers can earn additional rewards but face the risk of their funds being slashed to cover bad debts. These amounts are currently proposed target configurations and not yet secured coverage funds. (CryptoSlate) https://(wublock123.com)/news/tokenlogic-proposes-umbrella-bad-debt-cover-for-aave-v4-insurers-68390