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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.
osETH 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 osETH (StakeWise's liquid staking token) and it's held in Aave's pool, lent out to borrowers at the variable borrow rate. You're not able to use osETH as collateral here—it's borrow-only—so you can't lever against it. Your deposit earns the supply APY, which right now is 0.00% because there's almost zero borrow demand; the formula is borrow APY × utilization × (1 − reserve factor), and with 0% utilization, that product is zero. Your osETH is redeemable at the full $292.55M available liquidity as long as you exit before other depositors drain the pool.
Aave Risk Council and BGD Labs manage this reserve; no pause, freeze, or isolation flags are active, signaling governance views osETH as stable enough to operate normally.
Supply APY is currently 0.00% because borrow demand is non-existent (0% utilization). The reserve factor of 15% means that if borrowing does pick up, Aave keeps 15 cents of every dollar of interest earned. Until utilization rises, there is no yield.
osETH carries smart contract and custodial risk through StakeWise's staking infrastructure, and its peg to ETH depends on StakeWise's operational health; the deterministic risk score is 14/100 (low), and no depeg warning is flagged. The deeper risk is illiquidity—$292.55M supplied against zero borrow demand means this reserve functions as a passive holding, not an active market.
Avoid if you need yield or liquidity management now; consider only if you're comfortable parking osETH long-term in a dormant reserve and can access Ethereum to exit.
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.
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.