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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.
PT-USDG-28MAY2026 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 USDG (a stablecoin with no identified issuer in the registry) into this reserve and it gets lent to borrowers on Ethereum. Because this reserve is borrow-only, your deposit cannot be used as collateral — you earn only the variable supply rate, set by borrow demand. Right now that rate is 0.00%, and the reserve is nearly full ($128 supplied, $128 available).
Aave Risk Council / BGD Labs operate this reserve. No pause, freeze, isolation, or silo flag is active, but the supply cap is fully consumed (100%), signaling governance expects no near-term capacity increase.
The supply APY of 0.00% reflects zero borrow demand: utilization is 0% and borrow APY is 0%. With no active borrowing, there is no interest flow to suppliers even after the 45% reserve factor is applied. This is a dead reserve economically.
USDG has no identified issuer in the registry, creating opacity on redemption mechanics and freeze risk. The supply cap is at 100% utilization—further deposits will revert. The 19/100 risk score reflects composite concerns, likely tied to issuer unknown status and tight capacity.
Avoid unless you have a specific reason to park USDG in Aave; zero yield and unknown issuer make this a placeholder, not a productive allocation.
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.
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.