Bank loans require credit checks, waiting, and endless paperwork.
On Aave, you just click a few buttons and borrow in 30 seconds.
What Can Aave Do?
| Feature | Description | You Get |
|---|---|---|
| Supply | Deposit tokens for others to borrow | Interest income |
| Borrow | Collateralize assets, borrow other tokens | Assets you need |
| Flash Loans | Uncollateralized loans (repaid in same tx) | Arbitrage opportunities |
Step-by-Step Guide
Step 1: Connect Wallet
- Go to app.aave.com
- Select network (recommend Arbitrum or Base for lower gas)
- Connect MetaMask
Step 2: Supply to Earn Interest
- Find your token in "Markets" (e.g., USDC)
- Click "Supply"
- Enter amount → Confirm transaction
Step 3: Borrow
- First supply collateral (e.g., ETH)
- Find desired token in "Borrow" (e.g., USDC)
- Enter borrow amount → Confirm
Health Factor
| Health Factor | Risk | Action |
|---|---|---|
| > 3.0 | 🟢 Safe | Relax |
| 2.0-3.0 | 🟡 Stable | Monitor |
| 1.5-2.0 | 🟠 Caution | Consider reducing debt |
| 1.0-1.5 | 🔴 Danger | Add collateral or repay immediately |
| = 1.0 | 💀 Liquidation | Collateral auto-sold |
Warning
Don't Borrow Maximum!
Aave shows the max you can borrow, but borrowing maximum puts your Health Factor near 1.0. Any small price drop triggers liquidation. Borrow less than 50% of maximum.
Danger
Liquidation Incurs 5-10% Extra Penalty
Getting liquidated doesn't just sell your collateral — Aave charges an additional liquidation penalty (typically 5-10%). Manage your Health Factor proactively.
Conclusion
Aave makes lending something anyone can do in 30 seconds.
Supplying for interest is one of the simplest passive income methods. Borrowing is a leverage tool for DeFi power users. Whatever your use case, remember: always respect the liquidation line.
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