01Aave V3
$12.0bn$17.3bn free41.0% in use
Money taken and money waiting
Borrowed money is already with borrowers. Available money is supplied but has not been borrowed.
02Morpho Blue
$5.7bn$11.2bn free33.8% in use
03SparkLend
$2.7bn$5.1bn free34.5% in use
04Maple
$1.8bn$2.8bn free39.7% in use
05Jupiter Lend
$1.1bn$1.1bn free48.5% in use
06Kamino Lend
$955mn$1.3bn free42.1% in use
07Fluid Lending
$756mn$703mn free51.8% in use
08Compound V3
$644mn$1.4bn free31.0% in use
09Lista Lending
$446mn$983mn free31.2% in use
10Aave V4
$388mn$664mn free36.9% in use
11Venus Core Pool
$381mn$1.3bn free22.9% in use
12Dolomite
$358mn$355mn free50.2% in use
13JustLend V1
$211mn$3.8bn free5.3% in use
14HyperLend Pooled
$185mn$352mn free34.5% in use
BorrowedStill available
The useful read: Aave V3 is the largest borrower-facing system in this group, but size alone does not tell us whether its loans are safe or its lenders can leave quickly.
Does the market disappear without its leader?
No. Removing Aave V3 cuts the total sharply, but more than half of tracked borrowing remains.
The top three still carry 73.9%. The market is broad enough to survive a one-system removal test, yet concentrated enough that the leaders still matter.
All tracked systems
$27.6bn
Without Aave V3
$15.6bn
What keeps a secured loan standing
The name on the app is only the front door. The money, protection and exit sit underneath it.
A lender supplies money
A saver, company or managed pool puts money where borrowers can take it.
The borrower locks more value
The borrower posts an asset worth more than the loan. That extra value is the first protection.
A price is watched
The system checks whether the locked asset still covers the debt.
The asset may be sold
If the safety margin breaks, the locked asset can be sold to repay the lender.
If the sale is fast enoughThe debt can be repaid from the locked asset./If the price falls too fastA shortfall may remain after the sale.
One contract, under a magnifying glass
Morpho is useful here because its market-level fields cover Ethereum and Base. This one example does not stand for the whole credit market.
USDC loan backed by cbBTC
Morpho contract on BaseMoney borrowed$1.5bn
Still available$168mn
Pool in use90.2%
Maximum loan vs locked value86.0%
Customer-facing productNot identified here
Price sourceNot in this edition
Contract market 0x9103c3b4e8...
How the loss path works: if the loan crosses this contract's maximum loan-versus-collateral rule, the position can be sold. The field does not promise that the sale will cover every dollar.
Where the trouble lands first
These are separate failure paths. They should not be squeezed into one risk score.
The locked asset falls slowly
It can be sold before the loan becomes too large.
Borrower loses the locked asset. Lender is repaid first.The price falls too fast
The sale may bring back less money than the borrower owes.
The lender, reserve or insurer may carry the shortfall.The price check is wrong
A borrower may be sold too early, or a weak loan may remain open too long.
Loss depends on which error occurred.The contract itself fails
Collateral rules may work as written and users can still lose money through faulty code or control.
The affected users carry the loss unless protection exists elsewhere.Read any loan with four questions
Ignore the product name at first. If one answer is missing, that is where the review begins.
Who supplies the money?
Name the depositors, treasury or managed pool, not only the app shown to customers.
What protects the loan?
Name the locked asset, the price check and the point at which it can be sold.
How can money leave?
Can lenders withdraw now, must they wait for repayment, or do they need another buyer?
Who carries a loss?
Name the party left short if the asset falls too fast, the price is wrong or the contract fails.