Complete guide to lending and borrowing on Aave. Earn yield or access liquidity without selling.
LendingIntermediate20-30 minutes6 stepsPrerequisites: Crypto assets to lend, ETH for gas
On this page
Quick Overview
1Go to Aave
2Choose Network
3Supply Assets
4Enable as Collateral (Optional)
5Borrow (Optional)
6Monitor Position
Aave is the largest lending protocol in DeFi with over $10 billion in deposits. You can earn yield by lending assets or borrow against your crypto without selling.
Why Use Aave?
For Lenders:
Earn 2-8% APY on stablecoins
Earn 1-4% on ETH and BTC
Withdraw anytime
For Borrowers:
Access liquidity without selling
Use crypto as collateral
Flexible repayment
Key Concepts
Term
Description
. . .
. . . . . . -
Supply APY
Interest earned on deposits
Borrow APY
Interest paid on loans
LTV
Loan-to-Value ratio
Health Factor
Liquidation risk indicator
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Track your Aave positions with Fensory. Monitor health factor and yields.
Start Tracking →
Step-by-Step Instructions
1
Go to Aave
Visit app.aave.com and connect your wallet.
Warnings
⚠Only use app.aave.com
2
Choose Network
Select your network (Ethereum, Arbitrum, etc.) from the dropdown.
Tips
✓L2 networks have lower gas fees
3
Supply Assets
Click Supply, choose an asset, enter amount, and confirm the transaction.
Tips
✓You receive aTokens representing your deposit
4
Enable as Collateral (Optional)
Toggle the collateral switch if you want to borrow against your deposits.
Warnings
⚠Enabling collateral means you can be liquidated
5
Borrow (Optional)
Click Borrow, select asset and amount. Keep Health Factor above 1.5 for safety.
Warnings
⚠Health Factor below 1.0 = liquidation
6
Monitor Position
Check your health factor regularly. Repay or add collateral if it drops.