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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.
USDC 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 USDC (Circle's dollar stablecoin on Ethereum) and earn 3.69% APY. Your deposit is lent to borrowers at 4.38% variable rate; your return is that borrow rate times 93.8% utilization, minus 10% reserve factor going to Aave's treasury. Your deposit is enabled as collateral — lenders can borrow against it at a 75% loan-to-value ratio. You can withdraw only the $142.58M in available liquidity; the rest is lent out.
Aave governance has not flagged this reserve; standard parameters apply. No pause, freeze, or isolation mode.
Borrow demand drives the 3.69% supply APY. At 93.8% utilization, the reserve is nearly fully deployed — demand is high and stable, but this tightness leaves little buffer; small withdrawals could push utilization near saturation.
At 93.8% utilization against $142.58M available liquidity, redemptions queue quickly if withdrawals spike. Circle can unilaterally freeze or blacklist USDC, cutting off this reserve's core function — no insurance or workaround exists on-chain.
Good fit for stablecoin-only yield if you accept Circle's control risk and won't need rapid exit. Avoid if you need on-demand liquidity or depend on USDC availability beyond Circle's discretion.
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.
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.
Utilization is 93.8%. Borrow demand is consuming most of the supply, and exit windows for large tickets ($1M+) may briefly throttle as the kinked IRM tries to attract repayment.
USDC is a centrally-issued asset (Circle). The issuer can freeze specific addresses (including aToken holders) and may comply with regulatory demands that affect this reserve. Aave is the secondary-market exposure layer; the primary obligation sits with Circle.