Aave

Aave v3 cbBTC

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

AUM

$967.44m-45.96%

Supply APY

0.00%

BBB+Rated Protocol

Updated Apr 2, 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

aEthcbBTC

0x5c64...d1Dd

ACLManager

0xc2aa...85b0

LendingPool

0x8787...A4E2

PoolConfigurator

0x64b7...bB27

variableDebtcbBTC

0xeB28...4a4d

PoolAddressesProvider

0x2f39...4E9e

Oracle (cbBTC - BTC/USD)

0xb41E...8B0A

cbBTC Token (FiatTokenProxy)

0xcbB7...33Bf

Key Strengths

Extensive audit coverage from top firms including OpenZeppelin, Trail of Bits, Sigma Prime, Certora, and Sherlock with continuous formal verification
Robust governance with two Guardian multisigs featuring diverse independent signers and 1-7 day timelocked execution
Extremely low utilization provides near-full immediate withdrawal availability, virtually eliminating bank-run risk for cbBTC lenders
Battle-tested through major stress events including record liquidation volumes with zero bad debt across all pools
Chainlink Proof of Reserve independently verifies 1:1 BTC backing for cbBTC across multiple chains

Key Risks

cbBTC Aave oracle uses a plain BTC/USD feed rather than a dual cbBTC/BTC feed, meaning a cbBTC depeg from BTC would not be detected by the pricing oracle
Single custodian (Coinbase) controls cbBTC with blacklist and pause capabilities built into the token contract, creating concentrated counterparty risk
100% wrapped asset concentration with the entire cbBTC supply depending on Coinbase BTC custody, with shorter operational history than comparable assets
Key service providers departing the DAO, creating governance transition risk during a period of internal tension
Backstop reserves represent a modest share of total protocol TVL, below conservative adequacy thresholds