AAVE vs UNI: Crypto Returns, Risk & Volatility (2026)

Q: Which is a better investment: AAVE or UNI?

Over the past year, it depends: AAVE led on total return (AAVE -37.2% vs UNI -42.8%), but UNI had the higher Sharpe ratio (UNI -0.03 vs AAVE -0.13). On risk, AAVE was less volatile (AAVE 88.5% vs UNI 108.6%), AAVE had a smaller max drawdown (AAVE -73.5% vs UNI -73.6%), and AAVE had less severe losses on the worst 5% of days (Expected Shortfall of AAVE -10.49% vs UNI -11.21%).

Written by Gale Finance Team

Reviewed by Sid Kalla CFA Charterholder

Quick answer

Which is a better investment: AAVE or UNI?

Over the past year, results are mixed (-37.2% vs -42.8%).

Total Return

AAVE WIN -37.2%

UNI -42.8%

Sharpe Ratio

AAVE -0.13

UNI WIN -0.03

Annualized Volatility

AAVE WIN 88.5%

UNI 108.6%

Max Drawdown

AAVE WIN -73.5%

UNI -73.6%

Analysis period: 2025-04-02 to 2026-04-01

AAVE Total Return

↓ -37.2%

UNI Total Return

↓ -42.8%

Relative Performance of AAVE vs UNI (Normalized to 100)

AAVE UNI

Normalized to 100 at start date for comparison

Key Takeaways

Total Return: AAVE delivered a -37.2% total return, while UNI returned -42.8% over the same period. AAVE outperformed on total returns.
Risk-Adjusted Return (Sharpe Ratio): Both Sharpe ratios were negative (UNI -0.03 vs AAVE -0.13), meaning both underperformed the risk-free rate; UNI was less negative.
Volatility (Annualized): UNI was more volatile, with 108.6% annualized volatility, versus 88.5% for AAVE.
Maximum Drawdown: AAVE's maximum drawdown was -73.5%, while UNI experienced a deeper drawdown of -73.6%.
Tail Risk (VaR & Expected Shortfall): At the 5% level (daily log returns), AAVE's VaR was -6.81% and its Expected Shortfall (CVaR) was -10.49%; UNI's were -7.80% and -11.21%. VaR is the cutoff; Expected Shortfall is the average move on the worst days.
Skew & Kurtosis: Skew: AAVE -0.18 vs UNI 0.76. Excess kurtosis: AAVE 2.16 vs UNI 7.06. Negative skew leans downside; higher excess kurtosis means fatter tails.
Tail Days & Extremes: 2σ tail days (down/up): AAVE 6/10, UNI 6/12. Worst day: AAVE -18.03% (2026-02-05) vs UNI -25.33% (2025-10-10). Best day: AAVE +19.20% (2025-05-08) vs UNI +40.32% (2025-11-10).
Risk ratios: Sortino - AAVE: -0.19 vs. UNI: -0.06 , Calmar - AAVE: -0.51 vs. UNI: -0.58 , Sterling - AAVE: -1.47 vs. UNI: -1.55 , Treynor - AAVE: -0.02 vs. UNI: -0.21 , Ulcer Index - AAVE: 39.75% vs. UNI: 42.53%

Aave vs Uniswap Correlation

0.57 Average Correlation

Aave and Uniswap are moderately correlated over the past year. With a correlation of 0.57, these assets show moderate co-movement, offering some diversification when held together.

For portfolio construction, this moderate correlation offers some diversification benefit, though the assets still tend to move together during major market moves.

Metric	Value
Current (30-day)	0.12
Average (full period)	0.57
Minimum	-0.25
Maximum	0.95

Correlation measures how closely two assets move together. Values near +1 indicate strong co-movement, near 0 indicates independence, and negative values indicate inverse movement.

Investment Comparison

If you invested $10,000 in each asset on April 2, 2025:

AAVE $6,281.91 -37.2%

UNI $5,718.58 -42.8%

Difference: $563.33 (AAVE ahead)

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Aave and Uniswap: Risk Analysis

Aave experienced its maximum drawdown of -73.5% from 2025-08-23 to 2026-04-01. It has not yet recovered to its previous peak.

Uniswap experienced its maximum drawdown of -73.6% from 2025-08-13 to 2026-02-04. It has not yet recovered to its previous peak.

Smaller drawdowns and faster recoveries indicate lower downside risk and greater resilience during market stress.

Sharpe Ratio of AAVE and UNI

AAVE Sharpe Ratio

↓ -0.13

UNI Sharpe Ratio

↓ -0.03

Sharpe ratio measures return per unit of risk (volatility). A higher Sharpe indicates better risk-adjusted performance. Both Sharpe ratios were negative (UNI -0.03 vs AAVE -0.13), meaning both underperformed the risk-free rate; UNI was less negative.

A Sharpe above 1.0 is generally considered good, above 2.0 is excellent. Negative Sharpe means the asset underperformed the risk-free rate. Calculated on each asset's full 365-day lookback of available prices and annualized using the asset calendar (365 for crypto, 252 trading days for equities/ETFs/metals).

Sortino Ratio of AAVE and UNI

AAVE Sortino Ratio

↓ -0.19

UNI Sortino Ratio

↓ -0.06

Sortino ratio measures return per unit of downside risk. Unlike Sharpe, it only counts downside deviation (returns below the target return). UNI had better downside-adjusted returns.

A higher Sortino is better. It's useful when upside volatility is common (crypto is the obvious example). Downside deviation: AAVE 61.7% vs UNI 67.4%. Calculated on each asset's full 365-day lookback of available prices, using the daily risk-free rate as the target return, and annualized using the asset calendar (365 for crypto, 252 trading days for equities/ETFs/metals).

Calmar Ratio of AAVE and UNI

AAVE Calmar Ratio

↓ -0.51

UNI Calmar Ratio

↓ -0.58

Calmar ratio compares CAGR to maximum drawdown. Higher Calmar means more return per unit of worst drawdown. AAVE posted the higher Calmar ratio.

Calmar is computed on each asset's full 365-day lookback and uses the max drawdown over that same window.

Sterling Ratio of AAVE and UNI

AAVE Sterling Ratio

↓ -1.47

UNI Sterling Ratio

↓ -1.55

Sterling ratio measures excess return per unit of average drawdown (typically drawdowns worse than 10%). AAVE posted the higher Sterling ratio.

Sterling uses average drawdown events deeper than 10% and subtracts the risk-free rate to report excess return.

Treynor Ratio of AAVE and UNI

AAVE Treynor Ratio

↓ -0.02

UNI Treynor Ratio

↓ -0.21

Treynor ratio measures excess return per unit of market risk (beta) instead of total volatility. AAVE posted the higher Treynor ratio.

Treynor uses beta vs the S&P 500 (SPY) on shared dates and the average 3-month Treasury rate as the risk-free rate.

Ulcer Index of AAVE and UNI

AAVE Ulcer Index

39.75%

UNI Ulcer Index

42.53%

Ulcer Index captures drawdown depth and duration. Lower Ulcer Index means less drawdown pain. AAVE had the lower Ulcer Index (less drawdown pain).

Ulcer Index is computed from each asset's drawdown series over the full lookback window.

Tail Risk & Distribution Shape (1-Year): Aave vs. Uniswap

This section looks at the shape of daily returns, not just the average. Tail stats are computed per asset on its own daily series (crypto includes weekends). We use daily log returns $\ln\left(\frac{P_t}{P_{t-1}}\right)$ so multi-day moves add cleanly.

Definitions: Value at Risk (VaR), Expected Shortfall, skew, kurtosis, and fat tails.

Metric (1-Year)	AAVE	UNI
5% VaR (daily log return)	-6.81%	-7.80%
5% Expected Shortfall (CVaR)	-10.49% (worst 19 days)	-11.21% (worst 19 days)
Skew	-0.18	0.76
Excess kurtosis	2.16	7.06
2σ tail days (down / up)	6 / 10	6 / 12
Worst day	-18.03% (2026-02-05)	-25.33% (2025-10-10)
Best day	+19.20% (2025-05-08)	+40.32% (2025-11-10)

Downside co-moves (2σ) — 1-Year

Computed on shared dates only (n=364). A “2σ downside move” means a shared-close log return more than 2 standard deviations below that asset’s own mean on this shared-date series. Dates below show simple returns (%) for readability.

When UNI has a big down day, AAVE also does

50.0%

3 / 6 days

When AAVE has a big down day, UNI also does

50.0%

3 / 6 days

Show downside tail dates

Dates below are shared-date observations. The “Date” is the period end (close). Tail thresholds are computed on log returns, but the table shows simple returns (%) for readability. Returns are computed from the previous shared close to this one (for example, Friday → Monday includes weekend moves).

Days when both AAVE and UNI had a big down day (2σ)

Date (interval)	AAVE	UNI
2025-04-06	-15.40%	-13.34%
2025-10-10	-16.90%	-25.33%
2025-11-03	-13.36%	-11.48%

Days when AAVE had a big down day

Date (interval)	AAVE	UNI
2025-04-06	-15.40%	-13.34%
2025-10-10	-16.90%	-25.33%
2025-11-03	-13.36%	-11.48%
2025-11-14	-12.45%	-9.67%
2026-02-05	-18.03%	+11.66%
2026-03-03	-9.06%	+1.76%

Days when UNI had a big down day

Date (interval)	AAVE	UNI
2025-04-06	-15.40%	-13.34%
2025-08-25	-8.63%	-11.14%
2025-10-10	-16.90%	-25.33%
2025-11-03	-13.36%	-11.48%
2025-11-11	-8.60%	-10.99%
2026-02-04	-0.90%	-14.84%

Read this as “how ugly the ugly days get”, not as a precise forecast. One-year samples are small, so tail estimates are inherently noisy.

Aave vs Uniswap Volatility (AAVE vs UNI)

AAVE Volatility

88.5%

±4.63% daily

UNI Volatility

108.6%

±5.68% daily

Typical daily swing

AAVE

±4.63%

UNI

±5.68%

Aave's annualized volatility of 88.5% means it typically moves ±4.63% on any given day.

Uniswap's annualized volatility of 108.6% means it typically moves ±5.68% on any given day.

UNI's higher volatility means a wider path to returns — this can be attractive for tactical, shorter-term exposure, while AAVE's smoother profile may better suit long-term allocators seeking steadier growth.

For comparison, the S&P 500 typically has 15-18% annualized volatility, translating to roughly ±1% daily moves. Higher volatility means larger potential gains but also larger potential losses.

Aave vs Uniswap Performance Over Time

Metric	AAVE	UNI
30 Days	-22.8%	-14.2%
90 Days	-36.4%	-42.4%
180 Days	-67.5%	-59.2%
1 Year	-37.2%	-42.8%

Shorter time frames can show different leaders as market conditions change. Consider your investment horizon when comparing performance.

Full Comparison of Aave vs. Uniswap (1-Year)

Metric	AAVE	UNI
Total Return	-37.2%	-42.8%
Annualized Volatility	88.5%	108.6%
Sharpe Ratio	-0.13	-0.03
Sortino Ratio	-0.19	-0.06
Calmar Ratio	-0.51	-0.58
Sterling Ratio	-1.47	-1.55
Treynor Ratio	-0.02	-0.21
Ulcer Index	39.75%	42.53%
Max Drawdown	-73.5%	-73.6%
Avg Correlation to S&P 500	0.46	0.38
5% VaR (daily log return)	-6.81%	-7.80%
5% Expected Shortfall (CVaR)	-10.49%	-11.21%
Skew	-0.18	0.76
Excess kurtosis	2.16	7.06
2σ tail days (down / up)	6 / 10	6 / 12

Audit this calculation

Formulas, inputs, and conventions used to compute the metrics on this page.

Inputs & conventions

Shared window for pair metrics: 2025-04-02 → 2026-04-01 (last shared close).
Rolling correlation sample (shared closes): 335 rolling 30-day values (from 364 shared daily returns).
Annualization (days/year): AAVE: 365 days/year; UNI: 365 days/year.
Risk-free rate: Uses the 3-month U.S. Treasury yield (FRED: DGS3MO), averaged over each asset’s window:

AAVE: 4.18% over 2025-04-02 → 2026-04-01.

UNI: 4.18% over 2025-04-02 → 2026-04-01.
Volatility drag (rule of thumb): Estimated from annualized volatility (simple returns). For the log-return framing, see Log returns.

AAVE: ≈ -39.2%/yr

UNI: ≈ -59.0%/yr
Data alignment: No forward fill. Correlation and tail co-moves are computed on shared closes only.
For cross-calendar pairs (e.g., crypto vs stocks), weekend/holiday moves roll into the next shared close.
Return conventions: Volatility/Sharpe/Sortino use simple daily returns. Tail-risk uses daily log returns for distribution stats (but tables show simple returns). Log returns.

Formulas

Daily simple return

r_t = \frac{P_t}{P_{t-1}} - 1

Volatility

\sigma_{ann} = \sigma(r_t)\sqrt{A}

Volatility drag (approx.)

\text{drag} \approx \tfrac{1}{2}\sigma_{ann}^2

Sharpe Ratio

S = \frac{A\,\bar{r} - r_f}{\sigma(r_t)\sqrt{A}}

Sortino Ratio

So = \frac{A\,\bar{r} - r_f}{\sqrt{\mathbb{E}[\min(0,\,r_t - r_f/A)^2]}\,\sqrt{A}}

Maximum Drawdown

MDD = \min_t\left(\frac{P_t}{\max_{s \le t} P_s} - 1\right)

Average Correlation

\rho = \frac{\operatorname{cov}(r^A,\,r^B)}{\sigma_A\,\sigma_B}

Log returns

\ell_t = \ln\left(\frac{P_t}{P_{t-1}}\right)

Notation

$P_t$: Price on day t.
$r_t$: Simple daily return.
$\ell_t$: Log daily return.
$\bar{r}$: Average daily return.
$\sigma(r_t)$: Standard deviation of daily returns.
$A$: Annualization factor (days/year).
$r_f$: Annual risk-free rate.

Aave vs Uniswap: Frequently Asked Questions

Which has higher volatility: AAVE or UNI?

UNI showed higher volatility at 108.6% annualized, compared to 88.5% for AAVE Over the past year. Higher volatility means larger price swings in both directions.

Does AAVE provide diversification when held with UNI?

AAVE and UNI are moderately correlated over the past year, with an average correlation of 0.57. This offers some diversification benefit, though they still tend to move together during major market moves.

How bad are the worst 5% days for AAVE vs UNI?

Over the past year, AAVE's 5% VaR was -6.81% and its 5% Expected Shortfall was -10.49% (worst 19 days). UNI's were -7.80% and -11.21% (worst 19 days).

Do AAVE and UNI crash together on bad days?

On shared dates (n=364), when UNI has a 2σ down day, AAVE also does 50.0% (3/6 days). In the other direction, when AAVE has one, UNI also does 50.0% (3/6 days).

Which has better risk-adjusted returns: AAVE or UNI?

Both assets posted negative Sharpe ratios Over the past year (UNI -0.03 vs AAVE -0.13), meaning both underperformed the risk-free rate; UNI was less negative.

Can AAVE and UNI be combined in a portfolio?

Yes, though allocation sizing matters. Their moderate correlation offers some diversification benefits. UNI's higher volatility (108.6%) means even small allocations can materially impact overall portfolio risk.

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