@oaksprout thanks for opening the thread and giving highlight for the topic since the aim of Safety Module is to cover the asset-related risk of the system and for providing this protection the SM stakers are receiving AAVE rewards.
Indeed, ENJ has around 1.5 mm USD worth deposits with 1.91% of utilization. However, the utilization rate indicates the borrowing utilization, not for example how much ENJ has been used as a collateral, which is main use-case in the Aave Protocol.
I would confirm that the ENJ market is small (1.5 mm USD worth) at the moment, however it might currently create around 0.5-0.8 mm USD demand on stablecoin borrowings.
What would be interesting is to create a market for smaller market range collaterals, which would create some interesting yield rates for stablecoin depositors and at the same time de-risking the main pool. This would of course require that the SM would be tranched one way or another (see Delphi Digital discussion on the topic).