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Sharpe FinanceDID YOU KNOWnext in 7s
There are more EVM L2s now than there are countries in the eurozone.
Morpho Blue · Aave V3 · 11 chains · scoring refreshed every 5 min
There are more EVM L2s now than there are countries in the eurozone.
cbETH 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 cbETH (Coinbase's wrapped ETH) and it gets lent out to borrowers at a variable rate. Your deposit earns 0.00% APY right now because borrowers are paying only 0.05% and utilization is just 0.3%—most of your capital sits idle. You can redeem at any time against the $16.09M available liquidity. cbETH is enabled as collateral, so borrowers use it to back loans; in eMode (for ETH-correlated positions) it's priced at 93% LTV, meaning tighter leverage.
Aave governance accepted this reserve with standard Ethereum collateral rules. No pause, freeze, isolation, or other flags; the reserve is operating in its intended state.
Supply APY is set by borrow demand: 0.05% variable borrow APY × 0.3% utilization × (1 − 0.15 reserve factor) ≈ 0.00%. The 0.3% utilization is extremely low—rates will barely move unless borrowing demand spikes. Reserve factor of 15% means Aave takes that share of all borrower interest.
Coinbase can freeze or redeem cbETH, or change its redemption terms. This is not a technical oracle or liquidity risk—it's pure issuer control. A Coinbase freeze would strand your capital at its current LTV regardless of ETH price; liquidations would then depend on forced sales or Aave governance intervention.
Good fit for collateral-heavy strategies (eMode leverage on ETH-correlated holdings) if you accept Coinbase counterparty risk and want to avoid ETH's 2% staking costs. Avoid if you need predictable yield—0.00% APY leaves no cushion against opportunity cost.
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.
Borrowers in this eMode category operate against a raised LTV / LLTV against correlated assets. The on-chain liquidation surface for this reserve is the eMode LLTV, not the base — supply-side risk is calibrated to the higher figure when the borrower opts in.
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.
cbETH 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.