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TVL $2.1BAPY 0.00%low riskUpdated Feb 1, 2025

Aave Ethereum cbBTC

Supply cbBTC to Aave V3 on Ethereum. cbBTC is Coinbase-wrapped Bitcoin offering an alternative to WBTC with different custody assumptions.

ProtocolAave V3
Networkethereum
SymbolAETHCBBTC
CategoryMoney Markets
Underlying Assets
cbBTCBTC
Contract Address0x5c647ce0ae10658ec44fa4e11a51c96e94efd1dd

What is Aave Ethereum cbBTC?

Aave Ethereum cbBTC is a lending market for Coinbase's wrapped Bitcoin (cbBTC). Launched in 2024, cbBTC provides Bitcoin exposure on Ethereum with Coinbase serving as the sole custodian. This offers a different trust model compared to WBTC's multi-merchant system.

How This Market Works

cbBTC lending follows the standard Aave V3 model:

  1. Deposit cbBTC into the lending pool
  2. Receive aETHcbBTC tokens representing your position
  3. Earn interest from borrowers (typically minimal for Bitcoin)
  4. Withdraw cbBTC plus yield when needed
Supply Rate Context: Like WBTC, cbBTC has very low supply APY because users primarily deposit it as collateral rather than seeking to borrow it.

What Assets Are Involved

Supply Asset: cbBTC (Coinbase Wrapped BTC) - Coinbase-custodied Bitcoin on Ethereum Receipt Token: aETHcbBTC - interest-bearing deposit token

Use cases for cbBTC on Aave:

  • Collateral for borrowing stablecoins or ETH
  • Integration with Coinbase ecosystem
  • Alternative to WBTC with different custody assumptions

cbBTC vs WBTC Comparison

cbBTC (Coinbase):
  • Single custodian (Coinbase Custody)
  • Newer with less DeFi integration history
  • Backed by Coinbase's regulated infrastructure
  • Simpler trust model (one entity)
WBTC (BitGo):
  • Multi-custodian merchant network
  • Longer track record in DeFi
  • DAO-governed custodian changes
  • More decentralized custody model

Risk Disclosures

Smart Contract Risk: Aave V3 contracts are audited, but all smart contracts carry residual risk. Single Custodian Risk: cbBTC relies entirely on Coinbase Custody. Any issues with Coinbase's operations, security, or regulatory standing directly affect cbBTC. Oracle Risk: Accurate BTC price feeds are essential for proper collateral valuation. Utilization Risk: Generally low for wrapped Bitcoin markets. Regulatory Risk: As a US-based regulated entity, Coinbase is subject to US regulatory actions that could affect cbBTC operations. Newer Asset Risk: cbBTC has less battle-testing in DeFi compared to WBTC, meaning unknown edge cases may exist.

Related Money Markets

Aave Ethereum WETH1.25% APYAave Ethereum USDT2.45% APYAave Ethereum wstETH0.01% APYAave Ethereum USDC3.47% APYAave Ethereum WBTC0.01% APY
Disclaimer: APY and TVL figures are based on on-chain data and may fluctuate. Past performance does not guarantee future results. DeFi investments carry smart contract, market, and liquidity risks. This content is for informational purposes only and does not constitute financial advice. Always conduct your own research before investing.

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