Aave

Aave v3 USDT

Aave v3 USDT is a lending pool on Ethereum for supplying and borrowing USDT. Yield comes from borrower interest payments on the Aave v3 protocol, with USDT-specific risk parameters managed by automated Risk Stewards.

AUM

$5.12b-11.2%

Supply APY

1.89%-16%

BBB+Rated Protocol

Updated Mar 18, 2026

Risk Rating

BBB+

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This rating is based solely on publicly available information. The range from BBB+ to AA- reflects the gap between the current assessment and the potential rating achievable if all identified improvement areas are addressed.

SCS: Smart Contract Security

KMP: Key Management Permissions

M: Market

L: Liquidity

C: Collateral

PM: Protocol Mechanics

ICE: Infra Counterparty Exposures

PCE: Protocol Counterparty Exposures

G: Governance

FR: Financial Resilience

TLC: Team Legal Compliance

DT: Documentation Transparency

Potential Score

Provider risk assessed across Business, Operations, Reliability, and Security.

View the detailed scoring breakdown

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Contract Addresses

aEthUSDT

0x2387...086a

ACLManager

0xc2aa...dd42

LendingPool

0x8787...A4E2

PoolConfigurator

0x64b7...bB27

PoolAddressesProvider

0x2f39...4E9e

Key Strengths

Extensive audit coverage from top security firms with continuous formal verification and a large bug bounty program
Battle-tested through multiple USDT-specific stress events including large whale withdrawals and record liquidation volumes, all resolved without bad debt
Dual 5-of-9 Guardian multisigs with diverse independent signers and timelocked governance execution
Dedicated aUSDT staking coverage via the Umbrella Safety Module with automated slashing mechanism
USDT-specific risk management with proactively adjusted interest rate parameters and Isolation Mode collateral designation

Key Risks

USDT issuer risk with S&P Global rating Tether stability as "weak", citing reserve composition concerns relative to overcollateralization buffer
MiCA non-compliance has led to USDT delistings across major European exchanges with no compliance plans announced
Single whale controls the majority of USDT liquidity on Aave, creating significant concentration and exit risk
Historical USDT depeg events during market stress periods demonstrate ongoing peg stability risk
DAO-Labs governance tension over fee structures escalated to significant funding disputes