Skip to content
TVL $677MAPY 1.64%Low riskUpdated Feb 1, 2025

Aave Arbitrum WETH

Supply WETH to Aave V3 on Arbitrum. Lower gas costs enable more active position management.

ProtocolAave V3
Networkarbitrum
SymbolAARBWETH
CategoryMoney Markets
Underlying assets
WETHETH
Contract address0xe50fa9b3c56ffb159cb0fca61f5c9d750e8128c8

What is Aave Arbitrum WETH?

Aave Arbitrum WETH is a lending market on Aave V3 deployed on Arbitrum One. Arbitrum is an Ethereum Layer 2 rollup that offers significantly lower transaction costs while inheriting Ethereum's security.

How This Market Works

Supplying WETH on Arbitrum follows the same mechanics as Ethereum:

  1. Bridge WETH to Arbitrum (or acquire directly)
  2. Deposit into Aave V3 lending pool
  3. Receive aArbWETH tokens
  4. Earn interest from borrowers
  5. Withdraw plus yield anytime
L2 Advantages: Lower gas costs on Arbitrum make it economical to manage positions more actively, compound yields frequently, and adjust collateral ratios.

What Assets Are Involved

Supply Asset: WETH on Arbitrum Receipt Token: aArbWETH - Aave Arbitrum deposit token

Arbitrum WETH borrowing is used for:

  • Lower-cost leverage strategies
  • Active trading with frequent position adjustments
  • Yield farming across Arbitrum DeFi ecosystem

Arbitrum Network Characteristics

Arbitrum One as a Layer 2:

  • Security: Inherits Ethereum security through optimistic rollup design
  • Costs: ~10-100x cheaper than Ethereum mainnet
  • Speed: ~0.25 second block times
  • Ecosystem: Large DeFi ecosystem including Uniswap, GMX, and others

Layer 2 Considerations

Using Aave on Arbitrum involves:

  • Bridging assets from Ethereum (takes ~10 minutes to deposit, 7 days to withdraw officially)
  • Different liquidity pools than mainnet
  • Sequencer dependency for transaction ordering

Risk Disclosures

Smart Contract Risk: Same Aave V3 contracts deployed on Arbitrum, but different deployment context. Layer 2 Risk: Arbitrum relies on a centralized sequencer (plans for decentralization ongoing). Sequencer downtime could prevent transactions. Bridge Risk: Assets bridged to Arbitrum depend on bridge contract security. Withdrawal Delay: Official withdrawals from Arbitrum to Ethereum require a 7-day challenge period (though third-party fast bridges exist). Oracle Risk: Chainlink operates on Arbitrum, but L2 oracle infrastructure is newer. Utilization Risk: Arbitrum-specific liquidity may differ from mainnet. Lower TVL: Less liquidity than Ethereum mainnet markets may mean higher volatility in rates.

Related Money Markets

Aave Ethereum WETH1.25% APYAave Ethereum USDT2.45% APYAave Ethereum wstETH0.01% APYAave Ethereum USDC3.47% APYAave Ethereum WBTC0.01% APY
Disclaimer: APY and TVL figures are based on on-chain data and may fluctuate. Past performance does not guarantee future results. DeFi investments carry smart contract, market, and liquidity risks. This content is for informational purposes only and does not constitute financial advice. Always conduct your own research before investing.

See similar products and compare yields.

Track live yields, compare protocols, and build your DeFi portfolio with Fensory.

Open the appArrow right
Back to Money MarketsAll products