Aave

Aave v3 WETH

Aave v3 WETH Core Market is a lending pool on Ethereum for supplying and borrowing wrapped ETH. Yield comes from borrower interest payments on the battle-tested Aave v3 protocol, governed by AAVE tokenholders with timelocked on-chain execution.

AUM

$6.13b+12.4%

Supply APY

1.85%-13.55%

ARated Protocol

Updated Mar 18, 2026

Risk Rating

AAAAAABBBBBBCCCCCCD

This rating is based solely on publicly available information. The range from A 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

aWETH

0x4d5F...14E8

ACLManager

0xc2aa...dd42

LendingPool

0x8787...A4E2

PoolConfigurator

0x64b7...bB27

PoolAddressesProvider

0x2f39...4E9e

Key Strengths

Extensive audit coverage from top firms including OpenZeppelin, Trail of Bits, Certora formal verification, Sigma Prime, and Sherlock with continuous coverage through V3.6
Battle-tested through major stress events including record liquidation volumes with zero bad debt during a severe ETH crash, where the interest rate model ultimately restored liquidity
Robust governance with dual Guardian multisigs, timelocked execution, on-chain DAO voting, and Risk Stewards with automated parameter updates
100% organic yield from overcollateralized borrower interest with no emissions dependency across a deep liquidity pool
Umbrella Safety Module provides automated first-loss coverage including dedicated aWETH staking
SEC investigation closed without enforcement action after a multi-year probe

Key Risks

WETH utilization spiked to near-total capacity during severe market stress, temporarily constraining supplier withdrawals; inherent to lending model
DAO-Labs governance tension over fee allocation escalated to a large funding request, with significant token price impact during the dispute
Large leveraged position unwind demonstrated concentration risk from single-borrower exposure
Backstop-to-TVL ratio remains thin relative to total value locked, with DAO Treasury funds requiring governance vote to deploy and not part of automated coverage
No published incident response playbook despite proven emergency response capability