Lending / Multichain / AAVE
Aave
Supply crypto assets to lending markets or borrow against collateral across supported networks.
THE OVERVIEW
What Aave does
Aave is a protocol for supplying assets to shared liquidity pools and borrowing against collateral. Suppliers receive aTokens representing their supplied position; borrowing creates an interest-accruing debt position. Aave V3 is deployed on Ethereum and other supported networks. [1]
A borrow position depends on both its collateral and its debt. The health factor compares collateral value, adjusted by liquidation thresholds, with the amount borrowed. A value below one makes the position eligible for liquidation; market movements can change it without a new borrow. [2]
IN PRACTICE
What people use it for
Supply supported assets
Deposit into a market to earn interest from borrowing activity; withdrawals depend on available liquidity and collateral needs. [1]
Borrow against collateral
Access a supported asset while maintaining an overcollateralized position. [1]
Integrate lending
Applications can expose protocol operations and position data through Aave developer tools. [1]
UNDERSTAND THE TECHNOLOGY
Key concepts
aTokens
Tokens issued to suppliers track a position whose balance grows with accrued interest. [1]
Health factor
A measure of collateral coverage that changes with asset prices, borrowing and interest. [2]
Liquidation
Below the required health factor, collateral can be liquidated. Supplying more collateral or repaying debt changes coverage. [2]
MARKET CONTEXT
AAVE market
$180.48-1.56% 24hPrice history, market data and signal →FOLLOW THE STORY
Aave news & coverage
Dextape matches publisher headlines and asset references. Related asset reporting may cover the wider ecosystem.
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Official resources & sources
Dextape explanations based on the primary documentation below.