WETH on Aave Optimism

Wrapped Ether (WETH) is listed on the Aave V3 Optimism market. Lenders have supplied $18.87M (8.45K WETH) and borrowers owe $13.79M, so 73.1% of the pool is lent out and $3.53M is left to borrow. The supply cap is 42% used.

Suppliers earn 1.12% a year, and variable-rate borrowers pay 1.80%. The rate follows utilization: up to 90% the borrow rate rises gently from 0.00% to 2.20%, and above that it climbs steeply to 10.20% when everything is lent out. At 73.1% now, the pool is below that point. Aave keeps 15% of the interest as its reserve factor.

WETH counts as collateral here: you can borrow up to 80% of its value, and a loan is liquidated once it reaches 83%, with a 5.0% penalty. In E-Mode it can back loans of up to 93%. The best WETH supply rate elsewhere on Aave is 1.70% on the Ethereum Main spoke (V4). The cheapest place to borrow it is Celo at 0.24%. Compare WETH rates on every Aave market.

Among the 14 Aave markets with at least $1M of WETH supplied, this one pays the 7th highest supply rate. Its borrow rate is the 5th lowest of the 14 markets with at least $250K of WETH to lend. A week ago suppliers earned 1.08% and borrowers paid 1.77%, with 71.8% of the pool lent out. Over the past 30 days, the supply rate ranged from 1.03% to 1.12%, and the borrow rate from 1.73% to 1.80% (one reading a day).