Wrapped Aave Arbitrum WETH
WAARBWETH
Evaluation Score
Overall rating on a scale of 0-10
Dimension Breakdown
AI Analysis
Comprehensive evaluation of the token
WAARBWETH (Wrapped Aave Arbitrum WETH) is an ERC-20 wrapper designed to make interest-bearing aArbWETH composable and transferable on Arbitrum One. While it benefits from the established governance structure of Aave DAO (Score: 7.5) and ongoing core protocol maintenance (Score: 6.5), the wrapper itself exhibits near-zero market adoption, with only ~40 holders, minimal circulating supply, and very low liquidity (Tokenomics: 4.0, Market & Use Case: 4.0, Community: 2.0). Security and risk considerations (Score: 3.0) heavily depress the valuation due to a lack of dedicated audits for the wrapper contract, compounded by the severe April 2026 Kelp DAO rsETH exploit where malicious collateral was deposited to borrow WETH across Aave markets (including Arbitrum), leaving roughly $195M in bad debt and resulting in temporary market freezes at 100% utilization. With all six sections evaluated, the weighted average score is 4.6/10.
Development Activity
Code updates and developer engagement
Community Support
Social media presence and community engagement
Tokenomics
Supply, distribution, and utility
Market & Use Case
Value proposition and competitive landscape
Team & Governance
Team background and project governance
Security & Audits
Security history and audit status
About Wrapped Aave Arbitrum WETH (WAARBWETH)
Wrapped Aave Arbitrum WETH (WAARBWETH) is an ERC-20 receipt wrapper deployed on Arbitrum One that wraps Aave v3's interest-bearing aArbWETH token. Issued and governed under the Aave DAO framework, the wrapper is designed to make yield-bearing WETH positions transferable and compatible with decentralized finance applications and automated market makers, such as Balancer V3 on Arbitrum.
As a passive derivative receipt asset, WAARBWETH does not have an independent development team, roadmap, or dedicated community channels, relying entirely on the underlying Aave v3 infrastructure and governance processes. On-chain metrics reflect minimal adoption, with roughly 40 holders, a circulating supply of fewer than 250 tokens, and a sub-$500,000 market capitalization. Additionally, while the token inherits security properties from the core Aave protocol, the specific wrapper contract has no independent security audit submitted.
The token's risk profile is directly tied to the stability of the underlying Aave Arbitrum WETH reserve, which was impacted by a major security incident in April 2026. Following an exploit of Kelp DAO's LayerZero bridge involving 116,500 unbacked rsETH deposited across Aave v3 markets, attackers borrowed approximately $190 million in WETH—including 29,782 WETH and 821 wstETH on Arbitrum—generating roughly $195 million in protocol bad debt. In response, the Aave Protocol Guardian froze the Arbitrum WETH reserve on April 19–20, 2026, causing the pool to reach 100% utilization and temporarily preventing liquidity exits. The freeze narrative also spawned a phishing and drainer campaign targeting aArbWETH holders on April 22, 2026, before Aave governance restored collateral parameters and normal market operations by May 18, 2026.