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DEFI Yield Lending Aave Loan to Value Ratio on Ethereum

DeFi

The ratio of outstanding borrowed debt to deposited collateral value on Aave's Ethereum deployment.

Why it matters

To measure how heavily borrowers are leveraging their collateral on the platform.

How it is built

Dividing the total USD value of outstanding debt by the total USD value of collateral supplied on Aave's Ethereum market.

What to watch

A rising ratio indicates borrowers are taking on more leverage relative to their collateral, increasing the risk of liquidations if asset prices fall.

Related metrics

DEFI Yield Lending Aave Loan to Value Ratio on Ethereum — DeFi · Cryp2Nova