Aave

Aave v3 WBTC

Aave v3 WBTC is a lending pool on Ethereum for supplying and borrowing Wrapped Bitcoin. Yield comes from borrower interest payments, though utilization is very low (~2.5%) as WBTC is primarily used as collateral. The pool is governed by AAVE tokenholders with timelocked on-chain execution and dual Guardian multisigs.

AUM

$2.78b+2.54%

Supply APY

0.00%

A-Rated Protocol

Updated Mar 18, 2026

Risk Rating

A-

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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

aEthWBTC

0x5Ee5...6DE8

ACLManager

0xc2aa...85b0

LendingPool

0x8787...A4E2

Oracle (WBTC)

0xDaa4...0cAc

PoolConfigurator

0x64b7...bB27

variableDebtWBTC

0x40aA...8b7B

PoolAddressesProvider

0x2f39...4E9e

Key Strengths

Extensive audit coverage from top security firms with continuous formal verification and a large bug bounty program
Zero permanent user fund losses across eight-plus years of mainnet operation, including record liquidation stress events with no bad debt
WBTC pool has very low utilization with the vast majority of TVL immediately available for withdrawal, minimizing bank-run risk
Dual Chainlink oracle (WBTC/BTC + BTC/USD) correctly reflects WBTC peg status, with separate Proof of Reserve monitoring BTC custody
Governance proactively tightened WBTC parameters in response to custody concerns, demonstrating active risk management
SEC investigation closed without enforcement action after four years, with no outstanding regulatory actions

Key Risks

Entire WBTC pool TVL is a wrapped asset depending on BitGo/BiT Global custody with controversial involvement; a custody failure would cause WBTC depeg and potential bad debt
Key codebase maintainer and major governance contributor departing amid governance tensions, creating transition risk for protocol maintenance and governance continuity
Near-zero supply yield due to very low utilization provides negligible compensation for custody and smart contract risks borne by WBTC suppliers
Combined backstop reserves represent a small fraction of Ethereum TVL, below the threshold for low-risk classification, and no WBTC-specific safety module exists
No published incident response playbook for key rotation or signer replacement despite demonstrated rapid responses in practice