Is Aave V3 safe to use?

Based on our algorithmic risk model, this pool has a Safety Score of 90/100. This considers TVL ($60,028,784), Protocol Maturity, and Chain Security.

Where does the 1.26% yield come from?

The yield is generated from borrowers paying interest to access liquidity in the Aave V3 protocol on the Ethereum network.

What is the Utilization Rate?

The pool currently has a utilization rate of 25.69%. High utilization (>80%) often leads to higher APY but may cause temporary withdrawal delays.

Dashboard Protocols Chains Stability

USDS on Aave V3

Network: Ethereum • Rank: #21 on Chain

Updated: 04 Dec 2025, 11:04 UTC

1.26%

Current APY

Total Value Locked

$60,028,784

Safety Score

90/100

Utilisation

25.69%

Volatility

Low

Analyst Insight

By examining the on-chain metrics for USDS on Aave V3, our risk model classifies this as a conservative capital preservation play. While yields are moderate, the high safety score (90/100) prioritises principal protection.

The current APY of 1.26% is supported by a Total Value Locked (TVL) of $60,028,784. This pool is currently trading 53.8% below the category average. This yield compression often occurs in highly saturated, safer pools where capital seeks safety over returns.

Risk Context: With a Safety Score of 90/100, this liquidity pool is positioned for long-term holders seeking compound growth.

Deposit on Aave V3

Yield Mechanics: How It Works

Understanding the underlying structure is crucial for assessing sustainability. The 1.26% APY displayed for USDS is primarily derived from interest paid by borrowers on the Aave V3 protocol.

Supply & Demand

When you deposit USDS, you become a liquidity provider. Borrowers pledge collateral (like ETH or BTC) to take out loans. The interest rate fluctuates based on the Utilisation Rate (currently 25.69%). With moderate utilisation, rates remain stable, ensuring liquidity is available for withdrawals.

Risk Strategy & Management

While Aave V3 is a reputable protocol, no yield is without risk. Based on the current Safety Score of 90/100, we recommend the following approach:

Smart Contract Risk: Ensure you are comfortable with the audit history of Aave V3.
Liquidity Risk: With a TVL of $60,028,784, slippage is minimal for standard trade sizes.
Strategy: Suitable for a 'Set and Forget' strategy.

Frequently Asked Questions

Is Aave V3 audited?

Major protocols listed on DeFiStar typically have multiple audits. The Safety Score of 90 reflects the protocol's maturity and security track record.

Can I withdraw my USDS at any time?

Generally, yes. However, if the Utilisation Rate hits 100%, withdrawals may be paused until borrowers repay loans or new suppliers enter the pool.

Why does the APY change?

DeFi rates are dynamic. If more people deposit USDS, the rate may drop. If borrowing demand increases, the rate will rise. We update this data hourly.

Advanced Tools

Enhance your stablecoin yield data analysis with our suite of tools:

Profit Calculator: Forecast compound interest earnings.
Safety Audit: Deep dive into the risk factors.
Liquidity Depth: Analyse market dominance and slippage.

Data Analysis by MooniTooki

Chief Data Architect @DeFiStar.io Follow on X for real-time alpha and risk updates.

Data Sources: Metrics sourced directly from on-chain contracts via the DeFiStar Indexer.
Disclaimer: Data is for informational purposes only. Past performance is not indicative of future results. Terms of Service apply.