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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.
wstETH 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 wstETH (Lido-issued liquid staked Ethereum) and it's lent to borrowers who want ETH exposure without running a validator. Your deposit earns the variable supply rate, currently 0.00% because borrow demand is nearly zero (0.3% utilization). You can redeem your wstETH at any time against the $2.79B in available liquidity. wstETH is enabled as collateral, so borrowers can use it to secure loans.
Aave Risk Council and BGD Labs govern this reserve; no unusual flags (no pause, freeze, or isolation). The 0% supply APY despite a $2.80B position signals low current borrow demand rather than governance concern.
Supply APY is borrow APY × utilization × (1 − reserve factor). With 0.3% utilization and a 35% reserve factor, there's almost no borrow activity to generate yield. Rate stability is not a risk here because utilization is too low to swing meaningfully.
No material risks flagged above elevated severity. The reserve's Sharpe-composite risk score is 16/100. Lido can update wstETH mechanics, but that's an issuer-level risk, not a reserve-specific one.
Good fit for long-term ETH holders using high-LTV (79% or 93% in eMode) collateral strategies who don't require yield. Avoid if you need current income.
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.
Borrowers in this eMode category operate against a raised LTV / LLTV against correlated assets. The on-chain liquidation surface for this reserve is the eMode LLTV, not the base — supply-side risk is calibrated to the higher figure when the borrower opts in.
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.