WBTC on Aave Optimism

Wrapped BTC (WBTC) is listed on the Aave V3 Optimism market. Lenders have supplied $13.43M (177.16 WBTC) and borrowers owe $809K, so 6.0% of the pool is lent out and $1.62M is left to borrow. The supply cap is 51% used.

Suppliers earn 0.02% a year, and variable-rate borrowers pay 0.80%. The rate follows utilization: up to 80% the borrow rate rises gently from 0.50% to 4.50%, and above that it climbs steeply to 304.50% when everything is lent out. At 6.0% now, the pool is below that point. Aave keeps 50% of the interest as its reserve factor.

WBTC counts as collateral here: you can borrow up to 73% of its value, and a loan is liquidated once it reaches 78%, with a 7.5% penalty. The best WBTC supply rate elsewhere on Aave is 0.02% on Arbitrum. The cheapest place to borrow it is the Ethereum Main spoke (V4) at 0.28%. Compare WBTC rates on every Aave market.

Among the 6 Aave markets with at least $1M of WBTC supplied, this one pays the highest supply rate. Its borrow rate is the 6th lowest of the 6 markets with at least $250K of WBTC to lend. A week ago suppliers earned 0.02% and borrowers paid 0.79%, with 5.8% of the pool lent out. Over the past 30 days, the supply rate held at 0.02%, and the borrow rate ranged from 0.78% to 0.80% (one reading a day).