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Sharpe FinanceDID YOU KNOWnext in 7s
Most depeg events happen on weekends. Market makers don't sleep — they just close their books.
Morpho Blue · Aave V3 · 11 chains · scoring refreshed every 5 min
Most depeg events happen on weekends. Market makers don't sleep — they just close their books.
rsETH 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.
Depositing rsETH means you lend it to Aave borrowers and it sits in the reserve earning nothing — the supply APY is 0.00% because no one is borrowing it. You cannot use rsETH as collateral; it's borrow-only, meaning it exists solely for borrowers who want to take rsETH loans. Your deposit is fully redeemable at the stated liquidity of $898M, but earning zero yield makes it a parking spot, not an income generator.
Aave governance has frozen this reserve, blocking all new deposits and borrows — a signal that the reserve is under active review or deemed unsuitable for new activity.
Supply APY is pinned at 0.00% because borrow demand is absent (0% utilization). With no borrowers, there is no interest income to distribute to suppliers, regardless of the 15% reserve factor.
The reserve is frozen by governance decision [high]. This is the binding constraint — you cannot deposit or withdraw until the freeze is lifted, making it a liquidity trap regardless of underlying asset quality.
Avoid. The freeze blocks entry and exit; this is not a productive allocation channel.
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.
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.