I feel like 10 teams offer Demelo more than 3.7M per, and with longer term.

Agree with this. (The Schmidt trade is highly optimistic, also, IMO) I think when he looks at his role on the team, his performance, and the salaries of the defenseman who rank lower than him on the depth chart (Schmidt, Pionk), the $ number likely starts with 5. If he's taking a discount, perhaps he accepts 5 - 5.5 million over 3-4 seasons. On some levels, that feels rich, but Jets are highly unlikely to replace his value through trade and definitely not in free-agency---unless they overpay even more.