Aave
The largest pool of borrowed money in DeFi at $18.39bn, with no depositor-loss event in six years as the most obvious target in the industry.
- Founded
- 2017
- Registered
- Switzerland
- Site
- aave.com
The short answer
It holds $18.39bn of borrowed money, the largest pool in DeFi, and has produced no depositor-loss event in six years of being the most obvious target in the industry. We score its record 10 out of 10 and its scale 10 out of 10 — the only protocol to take both. Its risk process is also the most externally legible here: parameters come from published methodology rather than a governance mood. What keeps it from a clean sweep is upgradeability, at 6: the contracts can be changed.
Key facts
| Borrowed money outstanding | $18.39bn — the largest pool in DeFias of 14 Jul 2026 |
|---|---|
| Depositor losses | None in six years, as the single most obvious target in the industryas of 14 Jul 2026 |
| Record score | 10 out of 10as of 14 Jul 2026 |
| Scale score | 10 out of 10 — the only protocol in our DeFi rating to take bothas of 14 Jul 2026 |
| Transparency | 9 out of 10 — risk parameters come from published methodology rather than governance moodas of 14 Jul 2026 |
| Upgradeability | 6 out of 10 — the contracts can be changed, which is the main structural caveatas of 14 Jul 2026 |
| Rating cards | Two: lending platforms and DeFi protocolsas of 14 Jul 2026 |
Is Aave safe?
Six years, the largest pool of borrowed money in DeFi, the most obvious target in the industry, and no depositor has lost money. That is the whole case, and in a sector where the base rate of loss is high it is a substantial one. We score its record 10 out of 10.
What sits behind the record is process rather than luck. Aave’s risk parameters — what can be borrowed against what, at what ratio, with what liquidation threshold — come from published methodology with outside risk providers, not from a governance vote reacting to the mood of a week. That makes its decisions legible in advance, which is unusual, and we score transparency 9 out of 10.
The structural caveat is upgradeability, scored 6 out of 10. The contracts can be changed by governance. For a protocol holding $18.39bn that is a real dependency: you are trusting not only today’s code but the process that can replace it. Morpho answers this differently with an immutable primitive, and the trade there is that risk moves into curated vaults rather than disappearing.
The risk that actually applies to a depositor is neither of those. It is market risk — a collateral asset falling faster than liquidators can act, leaving bad debt. Aave’s conservatism on parameters is precisely what is supposed to prevent that, and six years is a meaningful sample.
What the two rating cards measure
Aave holds cards in two of our categories, and they ask different questions. The lending card scores it on solvency, cost, liquidity, risk architecture and coverage — whether the market is safe to lend into and what it actually pays. The DeFi protocol card scores upgradeability, record, scale, transparency and coverage — whether the protocol itself is sound.
A protocol can do well on one and badly on the other, and reading both is how you see the shape. Aave takes 10 on record and 10 on scale on the protocol card; the lending card is where you find what the market actually earns and how easily you could exit at size.
Both cards are linked from the ratings section below, and the criterion breakdowns there carry the numbers behind every score with the category median beside them.
Incident record
No recorded incidents since 2017, verified 14 Jul 2026.
In our ratings
Compared with
Our coverage of Aave
- How to spot a fake proof of reserves27 Sept 2026
- Bitget loses $351.6m — and the fund it says covers it is one we could not verify25 Sept 2026
- Is Kraken safe? The evidence, and what it lacks25 Sept 2026
- What happens to your coins if an exchange goes bankrupt23 Sept 2026
- Is Coinbase safe? What its own filings say19 Sept 2026
- How to move crypto off an exchange, step by step17 Sept 2026
- Token approvals: the permission that drains wallets15 Sept 2026
- What "not your keys, not your coins" leaves out9 Sept 2026
- The seed phrase mistakes that cost people everything7 Sept 2026
- Hardware wallet or software wallet: how to decide5 Sept 2026
Questions people ask
Has Aave ever lost depositor funds?
No. Six years, the largest pool of borrowed money in DeFi at $18.39bn, and the most obvious target in the industry, with no depositor-loss event. We score its record 10 out of 10 on that basis.
Can Aave’s contracts be changed?
Yes, through governance, which is why upgradeability scores 6 out of 10 — the main structural caveat against it. You are trusting the process that can replace the code as well as the code. Morpho answers this with an immutable primitive and moves the risk elsewhere rather than removing it.
How does Aave set its risk parameters?
From published methodology with outside risk providers rather than from governance votes reacting to events. That makes its decisions legible in advance, which is unusual in the category and why transparency scores 9 out of 10.
What is the real risk of lending on Aave?
Market risk, not hacking: a collateral asset falling faster than liquidators can act, leaving bad debt in the pool. Conservative parameters are what is meant to prevent it, and six years without a depositor loss is a meaningful sample rather than a guarantee.
What changed
- 27 Sept 2026 — Profile published.