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Sharpe FinanceDID YOU KNOWnext in 7s
The most-traded asset in DeFi history isn't ETH, BTC, or USDC. It's a wrapper around one of them.
Morpho Blue · Aave V3 · 11 chains · scoring refreshed every 5 min
The most-traded asset in DeFi history isn't ETH, BTC, or USDC. It's a wrapper around one of them.
WBTC 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 WBTC and it gets lent out to borrowers who pay 0.34% annual interest. You earn essentially 0.00% because utilization is extremely low (2.9%) — almost all supplied WBTC sits idle. WBTC is enabled as collateral, so borrowers use it to secure loans, but you cannot borrow against your deposit here. You can redeem your WBTC at any time from the $2.61B available liquidity.
Aave Risk Council and BGD Labs oversee this reserve; no pause, freeze, or isolation flags are set, signaling governance sees no immediate operational risk.
Supply APY is borrow APY × utilization × (1 − reserve factor): 0.34% × 2.9% × 50% = 0.005%, rounds to 0.00% displayed. The 2.9% utilization means almost no borrower demand — rate is stable because it has nowhere to move.
BitGo holds the sole ability to mint and freeze WBTC. A freeze order would strand your deposit; a minting failure would break the peg. The reserve has consumed 89% of its supply cap, leaving little room for growth without governance action.
Avoid if you need yield; consider only if you require WBTC collateral mechanics and accept zero return for holding it.
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.
WBTC is a centrally-issued asset (BitGo). 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 BitGo.
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.