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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.
FBTC 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 FBTC (a Bitcoin wrapper issued by Ignition) and it gets lent to borrowers at 0.55% variable APY. Your supply earns 0.00% because utilization is only 0.6%—almost no one is borrowing against this reserve yet, so nearly all borrow interest goes to Aave's treasury (50% reserve factor) rather than suppliers. FBTC is enabled as collateral, meaning borrowers can use it as security for loans. Your deposit is redeemable at the reserve's available liquidity ($13.83M), though new deposits will likely be rejected since the supply cap is fully consumed.
Aave governance has filled the supply cap (100% consumed), signaling a deliberate size limit on FBTC exposure. The reserve is active with no pause, freeze, or isolation flags.
Supply APY is 0.00% because borrow demand is minimal (0.6% utilization). Until borrowing picks up materially, suppliers earn nothing; the 0.55% borrow rate is almost entirely retained by the protocol via the 50% reserve factor.
The supply cap is fully consumed—new deposits will revert, and high cap utilization suggests governance is cautious about FBTC's liquidity or counterparty risk. Ignition's ability to mint / freeze FBTC is a trust dependency.
Avoid if you expect yield; good fit only if you need FBTC as collateral and accept zero return while holding it.
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.
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.