Aave Mobile App Adds Support for USDC Deposits from Base
Aave's mobile app has added support for USDC deposits from Base, allowing users to earn yields on their stablecoin holdings. The feature is live now and builds on top of a market that has already accumulated between $178 million and $182 million in USDC deposits. This market, known as the V3 market on Base, has been running since 2023 and has a utilization rate of around 89-90%, meaning nearly every dollar deposited is being borrowed by someone else.
High utilization rates can be beneficial for lenders, who see increased yields, but may hurt borrowers, who face higher costs of capital. Currently, borrow rates on the V3 market are sitting at around 4.6%. For depositors, Aave's app is advertising USDC and USDT yields in the 3-6.5% range depending on market conditions.
Base earns its place in this story due to its native issuance of USDC by Circle, which means users are working with a first-party asset rather than a bridged version. This removes the risk associated with bridged assets and their smart contract risks.