Aave

Aave v3 USDe

Aave v3 USDe Core Market is a lending pool on Ethereum for supplying and borrowing Ethena USDe. Yield comes from borrower interest payments on the battle-tested Aave v3 protocol, though displayed APY is predominantly driven by Merit/Merkl incentives.

AUM

$214.55m-80.95%

Supply APY

2.56%+172.34%

BBRated Protocol

Updated Apr 2, 2026

Risk Rating

AAAAAABBBBBBCCCCCCD

This rating is based solely on publicly available information. The range from BB to BB+ 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

aEthUSDe

0x4F59...DECF

ACLManager

0xc2aa...4e60

USDe Token

0x4c9e...68b3

LendingPool

0x8787...a4e2

PoolConfigurator

0x64b7...bB27

PoolAddressesProvider

0x2f39...4E9e

Key Strengths

Extensive audit coverage from top firms with continuous formal verification and an active bug bounty program
Conservative USDe risk parameterization with 0% Max LTV, managed supply caps, and automated liquidation mechanics via Risk Stewards
Battle-tested through major stress events including record liquidation volumes with zero bad debt to lenders
Robust governance with diverse Guardian multisigs, timelocked execution, and full on-chain DAO governance
Moderate pool utilization with significant available liquidity providing better immediate exit capacity than most Aave pools

Key Risks

USDe is a synthetic dollar backed by delta-neutral derivative positions exposed to recurring funding rate inversions, creating structural fragility in its peg
Off-chain OES custody and CEX counterparty concentration create opaque, unverifiable counterparty risk with demonstrated exposure during exchange incidents
USDe has experienced brief depegs during market stress and its derivative-backed peg can deteriorate rapidly unlike fiat-reserve stablecoins
Displayed yield is predominantly incentive-driven from Merit/Merkl programs with low organic supply APR from borrower interest alone
Bank-run risk amplified by USDe dynamics where borrowers may not repay depreciating loans, trapping suppliers with declining asset value
Combined backstop reserves below optimal threshold relative to the protocol's scale