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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.
LBTC 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 LBTC (Lombard's Bitcoin wrapper on Ethereum) and it sits in the reserve earning 0% APY—there are currently no borrowers, so no interest accrues. Your deposit is redeemable at full liquidity since all $192.67M supplied is available. LBTC is enabled as collateral, meaning borrowers can use it to secure loans, with a 70% loan-to-value ratio and 8.5% liquidation bonus if the price drops. Supply rate tracks borrow demand; today that's zero.
Active, no pause or freeze flags. The 90% supply cap consumption signals governance is monitoring inflows closely but has not restricted deposits.
0% today because utilization is 0%—no one is borrowing against LBTC yet. Once borrowers arrive, APY will be borrow rate × utilization × 50% (the reserve factor keeps the other 50% for Aave). At 0% utilization, there is no rate stability risk from redemption pressure, but no yield either.
Deterministic risk score is 16/100, the lowest tier. No elevated risks are flagged. The main exposure is Lombard's ability to maintain LBTC's peg and redemption mechanics; the reserve itself carries no oracle or liquidity circuit breaker concerns.
Good fit for Bitcoin holders seeking Ethereum collateral optionality with zero current yield cost; avoid if you need immediate returns.
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.
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.
Aave V3 has been live since March 2022 with significant TVL and continuous third-party audits. Historical incidents have been contained but the protocol surface is large (Pool / aTokens / debtTokens / IRM / Oracle / UiHelpers). Treat as bounded but non-zero tail risk.