Introduction

Safety Incentives are rewards distributed to participants who stake their assets in the Aave Safety Module. These incentives serve as compensation for the risk taken by stakers, whose assets may be slashed to cover protocol deficits in the event of a shortfall. Safety Incentives are primarily distributed in the form of AAVE tokens, and the amount allocated to stakers is determined by Aave Governance through votes on emission parameters.

The emission parameters, which dictate the rate of Safety Incentives, are voted on by the Aave community. These parameters are allocated from the Ecosystem Reserve (AAVE Tokens) and/or the Protocol Treasury. Governance votes allow AAVE token holders to influence how much of the reserve or treasury is allocated to these incentives and how they are distributed over time. This decentralised decision-making process promotes that the incentives align with the overall health and security of the Aave ecosystem.

Safety Incentives accumulate over time and can be claimed at any point while tokens are staked or after unstaking from the safety module.

Claiming Safety Incentives can be performed through protocol smart contracts or through a frontend such as Aave Labs interface, by performing the following steps:

Step 1: Connect Wallet

To start, press ‘Connect Wallet’ and choose the Ethereum wallet provider associated with your staked tokens.

Step 2: Navigate to the 'Stake' Tab

Once connected, go to the 'Stake' tab within the Aave interface, where you can monitor your staked assets and the accumulated Safety Incentives.

Step 3: Claim Rewards

Within the 'Stake' tab, you will see the option to claim your accumulated rewards. Click on the 'Claim' button, which will prompt a transaction in your connected wallet. Confirm the transaction to claim Safety Incentives.