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Sharpe FinanceDID YOU KNOWnext in 7s
More USDT exists than there are US dollars in the M0 base of several mid-sized countries.
Morpho Blue · Aave V3 · 11 chains · scoring refreshed every 5 min
More USDT exists than there are US dollars in the M0 base of several mid-sized countries.
ETHx 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 ETHx means you lend Stader's liquid staking token to Aave borrowers on Ethereum and earn the variable supply rate. Your deposit is redeemable at the reserve's available liquidity ($195.1k of $195.9k supplied). ETHx cannot be used as collateral in Aave itself, but borrowers in eMode category 1 can use their collateral to borrow ETHx at 0.06% variable APY. The supply rate you earn comes from that 0.06% borrow APY, multiplied by 0.4% utilization and reduced by Aave's 15% reserve factor — yielding 0.00% APY displayed.
Aave governance (Risk Council, BGD Labs, Aave Chan Initiative) maintains this reserve without pause, freeze, or isolation flags; the supply cap is set to 100% consumed, signaling deliberate capacity management rather than distress.
Borrow demand is negligible at 0.4% utilization; the 0.06% borrow rate generates almost no supply APY after the reserve factor. This extremely low utilization means the rate is stable but not remunerative.
Supply cap is at 100% consumed — new deposits will revert until existing supplied balance is withdrawn or borrow demand increases. The Stader-issued ETHx token carries issuer-specific risk (contract upgrade, governance change).
Avoid if seeking yield. Consider only if you need ETHx liquidity mechanics on Aave and can tolerate the possibility of deposit rejections when the cap is full.
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.
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.
Supply cap is 100% filled. New deposits revert once the cap binds; cap raises require an on-chain governance vote.
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.