Maximum LTV on Aave V3

• On Aave V3, the maximum standard Loan-to-Value (LTV) ratio depends on the collateral asset:
  • WETH (Wrapped Ether): Standard LTV is 80%.
  • E-mode (Efficiency Mode): For correlated assets like ETH and staked ETH derivatives (e.g., WETH, wstETH), the LTV can go up to 90% when using E-mode. This is the highest officially supported LTV on Aave V3 for certain assets and is available only under specific conditions 12.
  • Example: Using WETH or wstETH as collateral in Efficiency Mode yields the highest LTV of 90%. For other assets, standard LTVs are lower (e.g., USDC is 74%, DAI is 64%, LINK is 50%, etc.).

Maximum LTV on Compound V3

• On Compound V3, the maximum LTV is determined by the borrow collateral factor for each collateral asset:
  • The typical maximum LTV for major assets such as WBTC is 85%. This factor means that you can borrow up to 85% of the value of your WBTC collateral in the base asset (e.g., USDC).
  • Each asset will have a specific borrow collateral factor set by protocol governance, but 85% is the highest observed for major, liquid collateral types 4.

Summary Table

• E-mode on Aave V3 significantly increases LTV for certain correlated assets, offering greater capital efficiency for users who use, for example, ETH and staked ETH derivatives.
• Compound V3’s LTV (Collateral Factor) is set on a per-asset basis, with 85% as a notable maximum for highly liquid collateral.

Note: Actual LTVs you can access will depend on the specific asset and market configuration, and are subject to change via protocol governance.