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Sharpe FinanceDID YOU KNOWnext in 7s
The most-called smart contract function across all EVM chains is approve(). The second-most is the one people forget they ran.
Morpho Blue · Aave V3 · 11 chains · scoring refreshed every 5 min
The most-called smart contract function across all EVM chains is approve(). The second-most is the one people forget they ran.
DAI 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.
Depositing DAI on Aave means your stablecoins are lent out to borrowers at a variable rate; you earn 3.07% APY, calculated from the 4.80% borrowers pay minus a 25% cut to Aave's treasury. DAI cannot be used as collateral here—only borrowed against—so you're funding leverage, not securing it. Your deposit is redeemable at the reserve's available liquidity ($18.2M against $131.8M supplied), which currently leaves 86.2% utilization.
Aave Risk Council and BGD Labs govern this reserve; no pauses, freezes, or isolation flags are active, signaling standard operational status.
Supply APY mirrors borrow demand: 4.80% borrow rate × 86.2% utilization × (1 − 0.25 reserve factor) = 3.07%. At 86% utilization, the rate is sensitive to redemption pressure—small withdrawals shift utilization upward and tighten the spread.
Elevated utilization (86.2%) creates exit slippage risk: redemptions above the $18.2M liquidity buffer queue or trigger partial liquidations of borrowers, potentially widening the spread between deposit and withdrawal value during stress.
Good fit for allocators seeking low-volatility stablecoin yield who can tolerate 2–5 day settlement delays during high-redemption periods; avoid if you need daily liquidity or predictable exit pricing.
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.
This reserve isn't usable as collateral, so LTV / Liquidation LLTV / liquidation bonus don't apply. Borrowers can take it against other collateral; suppliers earn the variable rate driven by borrow demand.
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.
Utilization is 86.2%. Borrow demand is consuming most of the supply, and exit windows for large tickets ($1M+) may briefly throttle as the kinked IRM tries to attract repayment.
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.