$55 million Aave stablecoin pool sees just $4.4 million available for withdrawals

Aave's USDT0 stablecoin lending pool on the Monad network displayed a 6.10% annual percentage rate over the weekend, but only about $4.4 million of its $55.9 million supplied balance was unborrowed. For a lender weighing a large withdrawal, that smaller number mattered more than the headline yield.

Aavescan snapshot showed $51.5 million borrowed from the reserve. It followed a Sept. 11 analysis in which Aave service provider TokenLogic documented an earlier sharp retreat in USDT0 deposits. Together, the figures show how an attractive lending rate can coexist with limited room for a cash exit.

That is a consequence of how lending pools work. When suppliers remove tokens while loans remain outstanding, a greater share of the remaining pool is borrowed. Aave's interest-rate curve can then raise returns for the lenders who stay. The rising rate may reflect a shrinking cash buffer even without an increase in borrowing.

The withdrawal balance behind the yield

Aave's withdrawal rules limit suppliers to underlying tokens that are available and have not been borrowed. Cash access here means receiving those stablecoin tokens, rather than redeeming them for fiat currency. A depositor using the position as collateral may face another constraint: withdrawing must leave enough collateral to support the depositor's own loans.

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