How to Use Aave
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
- 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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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.
Tips
- ✓Set up alerts for health factor changes