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Sharpe FinanceDID YOU KNOWnext in 7s
Stablecoin issuers are now among the top 20 holders of US Treasury bills.
Morpho Blue · Aave V3 · 11 chains · scoring refreshed every 5 min
Stablecoin issuers are now among the top 20 holders of US Treasury bills.
MKR 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 MKR (Makerdao's governance token) on Ethereum and it sits in the reserve earning 0.00% APY—effectively no yield. Your deposit is lent out to borrowers at 0.16% variable APY, but utilization is only 1.1%, so almost no one is borrowing. You can redeem your MKR whenever you want from the $193.8k available liquidity, but the reserve is frozen by governance, meaning no new deposits are accepted.
Aave governance has frozen this reserve, signaling they are not actively managing it for new supply and likely see it as deprecated or low-priority.
There is no supply yield—utilization at 1.1% means almost zero borrow demand, so the 0.16% borrow rate generates negligible income after the 20% reserve factor. Low utilization implies the rate is stable only because it doesn't move; there's no active market here.
Reserve is frozen, blocking deposits outright. Supply cap is 100% consumed ($195.9k supplied against a cap), so any new entrant will fail to deposit even if the freeze were lifted. MKR's 50/100 risk score (mid-range on Morpho's scale) reflects governance token volatility and liquidity concentration.
Avoid—frozen status means governance has deprioritized this reserve. Existing depositors should monitor for redemption queuing if liquidity tightens further.
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.
New supply and borrow are disabled; withdrawal and repay remain open. Typically applied during a deprecation glide path or when governance is unwinding exposure.
Supply cap is 100% filled. New deposits revert once the cap binds; cap raises require an on-chain governance vote.