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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.
UNI 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 UNI tokens on Ethereum and they are lent out to borrowers at a variable rate. As a supplier, you earn interest only when borrowers draw on the reserve; that interest is the borrow APY (0.18%) times utilization (1.1%) times the share you keep after Aave's 20% fee — currently near zero because almost no one is borrowing. Your deposit is redeemable at the $2.83M available liquidity; the reserve is borrow-only, so it cannot be seized as collateral in liquidations. UNI has no issuer freeze risk.
Active and unrestricted; no pause, isolation, or silo flags. Aave governance has not applied capital or collateral restrictions to this reserve.
Supply APY tracks borrow demand, which is minimal here (1.1% utilization). At this utilization and 20% reserve factor, suppliers earn roughly 0.0014% APY. Low borrow demand means the rate will remain near zero unless borrowing sharply increases.
UNI is a low-volatility asset (risk score 12/100) with no depeg signal and no elevated synthesis flags. The only material constraint is borrow-only status: you cannot use your deposit as loan collateral, which limits utility for leverage strategies.
Good fit for passive UNI holders with long-term conviction who want minimal yield on idle tokens and don't need collateral mechanics.
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.
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.