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Sharpe FinanceDID YOU KNOWnext in 7s
The largest stablecoin in the world has never been fully audited.
Morpho Blue · Aave V3 · 11 chains · scoring refreshed every 5 min
The largest stablecoin in the world has never been fully audited.
cbBTC supply on Aave V3 (Ethereum). Read-only on Sharpe — deposits, withdrawals, and borrows execute on app.aave.com. We surface parameters, rates, and risk so you can compare this reserve against Morpho vaults on the same asset cohort.
Plain-English summary of this vault — what it does, who runs it, where the yield comes from, and what could break it. Generated from the same deterministic inputs shown elsewhere on this page; the numbers are the source, this is just the explanation.
You deposit cbBTC (Coinbase's wrapped Bitcoin) and it gets lent out to borrowers on Ethereum. The supply APY is currently 0.00%—borrow demand is so weak that even after Aave takes its 50% cut of borrower interest, nothing flows to you. Your cbBTC is redeemable at the $1.48B available liquidity; if that drains, redemptions queue. cbBTC is enabled as collateral, so borrowers can use it to secure loans, but that only works if Coinbase doesn't freeze the asset.
Aave governance and risk monitors have flagged Coinbase's control over cbBTC issuance and freeze authority as an elevated risk; no pause, freeze, or isolation flag is currently active, but the risk remains acknowledged in reserve monitoring.
The 0.28% borrow APY at 0.7% utilization produces the supply rate after Aave's 50% reserve factor cut. Utilization is very low, signaling weak demand; rates will stay near zero until borrowing picks up materially.
Coinbase can unilaterally freeze or recall cbBTC—regulatory action or business decision could lock your deposit. Second: $1.48B liquidity is large in absolute terms but supply cap is 82% consumed; a sudden redemption wave could exhaust it.
Avoid if you need yield or depend on redemption speed. Consider only if you view cbBTC collateral utility for borrowers as sufficient and trust Coinbase custody indefinitely.
On Aave V3, a supplier can withdraw up to the reserve's available liquidity instantly. Above that, the withdrawal must wait for borrowers to repay or new suppliers to deposit. Markets at 95%+ utilization can keep large redemptions waiting for hours to days at current rates.
Reserve parameters are set by Aave governance (BGD Labs + Aave Chan Initiative + Risk Council). Listings, caps, IRM curves, and LLTVs change through on-chain votes.
On Aave V3, supply APY = borrow APY × utilization × (1 − reserve factor). There is no curator skim; the only intermediation cost is the reserve factor, which funds the Aave treasury. No emissions slice in v1 of this integration — the headline is fully sustainable.
Aave V3 reserves carry parameter risk (LTV/LLTV adequacy vs collateral volatility), liquidity risk (high utilization slows exit), and depeg risk on the underlying. Governance can pause / freeze / adjust caps in response to incidents. Sharpe's full risk decomposition for Aave reserves rolls in v1.1.
How the composite risk score breaks down. Every number traces to an explicit input — /methodology documents each factor's formula.
Per-collateral decomposition: Sharpe-style realized σ from 30 daily log returns, blended 50/50 with the asset-taxonomy tier fallback. Phase 2 will replace the tier slot with liquidity depth, mechanism classification, and holder concentration. Methodology in /methodology.
The honest version. Every structural failure mode this vault is exposed to, ranked by severity. If you want to know whether to invest, start here.
cbBTC is a centrally-issued asset (Coinbase). The issuer can freeze specific addresses (including aToken holders) and may comply with regulatory demands that affect this reserve. Aave is the secondary-market exposure layer; the primary obligation sits with Coinbase.
Aave V3 prices and liquidations route through Chainlink's aggregator feed for this asset. A stale, manipulated, or wrong-side update is the protocol's largest single-point-of-failure for this reserve. Chainlink has a strong track record but the failure mode is binary.