Aave v3 USDC DeFi Yield & Risk Rating
Aave v3 USDC is a lending pool on Ethereum for supplying and borrowing USDC. Yield comes from borrower interest payments on the battle-tested Aave v3 protocol, governed by AAVE tokenholders with timelocked on-chain execution.
AUM
$2b
Net APY
3.77%
Active Users
20k
Type
Lending
Network
Ethereum
A-
Qualified GradeCeiling AA+
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CurrentPotential
This rating is based solely on publicly available information. DeFi protocol risk assessed across Security, Strategy and Operations on the AAA–D scale. 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.
SCSSmart Contract Security100
KMPKey Management Permissions91
MMarket100
LLiquidity85
CCollateral100
PMProtocol Mechanics93
ICEInfra Counterparty Exposures92
PCEProtocol Counterparty Exposures100
GGovernance100
FRFinancial Resilience87
TLCTeam Legal Compliance93
DTDocumentation Transparency100
Performance
Assets Under Management · 30D▲ 9.40%
$2b
Over the last 30 days, the total value of Aave v3 USDC has grown 9.40% with $204.53M in inflows.
Supply APY · 30D▲ 5.60%
3.77%
Over the last 30 days, the APY has increased from 3.57% to 3.77%.
Active Users · 30D▲ 2.29%
20k
Over the last 30 days, active users have increased by 2.29%, reaching 20.1K wallets.
Market Details
ChainEthereum
Treasury$388.00M
Code AuditsOpenZeppelin ↗Trail of Bits ↗Sigma Prime ↗Certora ↗PeckShield ↗Sherlock ↗MixBytes ↗Pashov ↗
Oracles UsedChainlink Price Feeds ↗Chainlink CAPO ↗
Stated Withdrawal TimeInstant
Component Ratings
Contract Addresses (6)
Key Strengths
S1Extensive audit coverage from top security firms with continuous formal verification and an active bug bounty program.
S2Organic supply yield sourced entirely from overcollateralized borrower interest, with no reliance on token emissions.
S3USDC carries a strong issuer profile, with an investment-grade stability assessment and reserves held in short-dated Treasuries managed by a major asset manager.
S4Battle-tested through record liquidation events and the March 2023 stablecoin depeg, with no bad debt passed to lenders.
Key Risks
R1USDC carries issuer counterparty risk: Circle can freeze addresses, and USDC depegged during the March 2023 banking crisis. This is structural to USDC denomination.
R2Inherent lending pool bank-run risk: at elevated utilization, severe mass withdrawal could temporarily constrain USDC exits.
R3Combined backstop and treasury reserves sit well below the threshold for optimal scoring relative to total protocol TVL.
R4Ongoing governance tension between the DAO and Aave Labs over fee allocation and funding creates a potential conflict of interest.
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