Aave Stablecoin Rates Hold at 7%+ as DeFi United Coalition Lines Up $161M to Backstop rsETH Bad Debt

5,634 pools | Median APY 1.55% | Avg 5.8%

$84.2B

LOW-RISK TVL

4.8%

LOW-RISK AVG APY

7.4%

MED-RISK AVG APY

TVL BY RISK TIER

Low: $84.2B (412 pools, 4.8%)Med: $52.4B (2184 pools, 7.4%)High: $26.2B (3038 pools, 24.2%)

WEEK OVER WEEK

Total TVL

$162.8B-$10.7B

prev: $173.5B

Average APY (TVL-weighted)

$6+$1

prev: $4

Aave V3 USDC Ethereum APY

7.17%+4.85pp

prev: 2.32%

Sky SUSDS TVL

$5.3B-$1.3B

prev: $6.5B

6 THINGS TO KNOW

Aave V3 Ethereum USDC Holds at 7.17% a Week After rsETH (+209% vs Pre-Incident)

USDC supply 2.32% to 7.17% (+209% WoW). USDT supply 2.43% to 6.86% (+183%). USDC borrow peaked at ~10% with USDT briefly at 14%. WETH utilization pinned at 100% all week.

Sky SUSDS Sheds $1.27B; SSR Cut 10bps to 3.65%

SUSDS TVL $6.54B (Apr 12) to $5.27B (Apr 25), -$1.27B / -19.4%. SSR cut 3.75% to 3.65% (-10bps). Spark Lending USDS supply also dipped from 6.12% to 5.84%.

Maple USDC Drains $930M; APY Defends at 4.89% (+71bps)

Maple USDC TVL $3.55B to $2.62B, -$930M / -26.2%. APY 4.18% to 4.89% (+71bps).

sGHO Jumps to 6.71% with Aave Safety Module Backing

sGHO supply rate 4.81% (last week) to 6.71% (this week), +1.9pp. TVL stable at ~$206M.

Saturn USDC Crashes 14.2% to 8.1% as Strategies Unwind

Saturn USDC APY 14.2% to 8.1% (-43%). TVL ~$103M to ~$89M.

Fluid and Sparklend Capture ~$700M of Sky-and-Maple Outflows

Fluid Lending TVL +17.2% WoW to $2.84B. Sparklend USDC supply 6.42%.

CHAIN BREAKDOWN

Ethereum dominated the action this week. The post-rsETH repricing concentrated in Ethereum stablecoin pools, with $92.4B of TVL across 1,842 pools and a 5.84% TVL-weighted average APY. Berachain remains an outlier in the data due to Bex AMM LP positions; the $101B headline TVL on those pools is double-counted LP collateral and not a real liquidity number. Base was the most meaningful L2 at $11.8B and 5.42% avg APY, with new Fluid and Morpho pools launching mid-week.

POOLS

AVG APY

TVL

Ethereum

1842

5.8%

$92.4B

Arbitrum

612

6.2%

$14.2B

Base

548

5.4%

$11.8B

Solana

184

8.4%

$6.8B

Optimism

284

5.2%

$4.9B

BNB Chain

218

4.9%

$4.1B

STABLECOIN YIELDS (AVG APY)

USDC

6.2%

$48.4B

USDT

5.9%

$32.8B

USDS

4.2%

$9.2B

DAI

4.4%

$4.8B

sUSDe

11.4%

$4.2B

GHO

6.7%

$412.0M

PYUSD

7.8%

$380.0M

USDP

5.4%

$240.0M

Avg APY can be skewed by outliers. TVL on right.

TOP RISK-ADJUSTED PICKS

412 pools | $84.2B TVL | 4.8% avg APY

Aave V3 USDC

Ethereum | Triple the rate of two weeks ago, no change in contract risk. Best tracked low-risk pickup.

7.2%

R:18

Aave sGHO

Ethereum | Safety-module backed savings without isolated pool exposure. +1.9pp WoW.

6.7%

R:22

BlackRock BUIDL

Ethereum | GENIUS Act ready tokenized T-bills, lowest tracked risk score.

4.5%

R:12

Aave V3 USDT

Ethereum | Mirrors the USDC repricing at +183% WoW. Same Aave V3 contract risk surface, slightly lower headline rate due to USDT supply preference. Pair with USDC for a diversified Aave V3 stablecoin allocation.

6.9%

R:19 | $1.6B

Sparklend USDS

Ethereum | USDS supply rate held above the SSR cut. Cleanest USDS yield alternative with Sky DAO governance backstop.

5.8%

R:28 | $1.8B

THIS WEEK IN STABLECOINS

The Block

Aave Proposes 25,000 ETH Contribution to DeFi United to Plug rsETH/Kelp Bad-Debt Hole

Aave proposed a 25,000 ETH contribution to DeFi United, a cross-protocol coalition fund organized to absorb the bad debt from the rsETH/Kelp bridge exploit. Combined with commitments from BGD Labs, Golem, Karpatkey, Kelp DAO, and individual depositors, the DeFi United fund now sits near 69,534 ETH (~$161M) against bad-debt estimates of $123.7M (socialized) to $230.1M (isolated to L2). A clean fill would clear the safety-module backstop overhang on Aave V3.

This is the catalyst that determines whether the post-rsETH stablecoin yield premium compresses or stays elevated. A successful DeFi United landing likely pulls Aave USDC supply back toward 4-5%; an incomplete fill keeps the 7%+ premium in place and the safety-module risk live.

Aave Governance Forum

rsETH Incident Report: Aave caps WETH borrow rate, freezes rsETH market

Aave's official post-mortem on the rsETH bridge exploit. The DAO lowered the WETH 100%-utilization borrow rate from 8.5-10.5% to 3.0% APR to keep borrow costs sustainable, froze the rsETH e-mode and isolated market, and confirmed that all losses are attributable to the LayerZero DVN compromise rather than any Aave contract bug. Bad-debt resolution path remains under safety-module governance review.

Explains why USDC and USDT supply rates stayed elevated all week and frames the still-unresolved safety-module bad-debt risk that backstops every Aave V3 stablecoin pool.

Holland & Knight

Treasury Proposes AML and Sanctions Compliance Rules for Stablecoin Issuers Under GENIUS Act

FinCEN and OFAC released a joint Notice of Proposed Rulemaking implementing the GENIUS Act's Bank Secrecy Act, AML and sanctions program requirements for permitted payment stablecoin issuers (PPSIs). The rule covers KYC, transaction monitoring, suspicious-activity reporting and sanctions screening at the issuance and redemption layers. The comment period runs through June 2, 2026.

First concrete federal compliance regime for USDC, USDP, PYUSD, USD1 and other PPSIs. Yields earned via regulated wrappers (Sky SSR, Maple, Spark Savings, BUIDL, USYC) sit downstream of issuer-level compliance, so this rule shapes the legal envelope every regulated stablecoin yield product operates inside.

OUTLOOK

The post-rsETH yield premium is now a week old and showing no signs of fading. The DeFi United coalition (~$161M committed, with Aave's 25,000 ETH the anchor) is the single biggest variable for the next two weeks: a clean fill against the $123-230M bad-debt range likely compresses Aave V3 USDC supply back toward 4-5% as the safety-module overhang clears; an incomplete fill keeps rates pinned at 6-7%+ and pulls more capital out of Sky and Maple. Circle's chief economist Gordon Liao is publicly arguing for a permanent liquidity premium, so even a successful DeFi United landing is unlikely to revert rates to the pre-incident 2-3% baseline. On the medium-risk side, Pendle PT volumes are climbing as allocators lock the premium; on the high-risk side, expect more strategy-unwind volatility like Saturn's 43% rate drop.

HIGHDeFi United Fill vs. rsETH Bad Debt

HIGHSky SSR Direction

MEDIUMMaple TVL Retention

HIGHGENIUS Act Comment Period

MEDIUMPendle Fixed-Rate Adoption