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About Staked Aave
Analysis of 14 Feb 2026Staked Aave (stkAAVE) is the staked version of AAVE tokens in Aave's legacy Safety Module, operating with slashing disabled since Umbrella's June 2025 launch. The Safety Module protects Aave's protocol TVL, which peaked at $57B in January 2026 before correcting 51% to $27.8B by February 14, 2026 during a broader crypto market downturn.
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Despite the TVL volatility, stkAAVE holders continue participating in the permanent $50M annual buyback program that has retired over 94,000 AAVE tokens since May 2025. The token operates with a 20-day cooldown period and 2-day withdrawal window.
With maximum 20% slashing risk currently disabled during the transition to Umbrella's automated system, stkAAVE functions primarily as a governance position earning approximately 7% APY through the Merit rewards program, with Aave V4 mainnet launch targeted for Q1 2026.
