**Please note that this feature is only available on version 5 of our website. If you want to interact with this feature, please visit the older version of our website at the following link: https://v5.myetherwallet.com/
Aave allows you to deposit and borrow 16 different types of cryptocurrencies while earning on your deposited collateral. Borrowed assets will accrue an annual interest that needs to be paid back when you’re done with the loan, but this accrual can be switched between a variable or stable rate..
If you’d like to deposit or borrow assets with Aave, you will need a wallet you can access with our interface. If you do not have a wallet, check out our guide on how to create a wallet to set one up.
Using Aave to earn on deposited assets
Step 1. Head to MEW and select ‘Access My Wallet’.
Step 2. Select ‘Dapps’ from the menu on the left or scroll down to our ‘Dapps’ section, then choose ‘Aave’.
Step 3. Click the green button that says ‘Deposit’ to see the full list of assets you can deposit. The earning rates for each currency are listed under the ‘APY’ section.
Different assets have different earning rates and borrowing power. Browse the selection before making your choice.
Remember, you can always swap for the asset you want to deposit using our Swap page.
Your “Aggregated Balance” shows the Total Balance for your deposits. If you’ve deposited more than one type of asset, you will see the total value covered by all your deposited assets.
Step 4. After you deposit, you will be sent a token in the form of ‘a_Token_’, which will be pegged 1:1 with the asset you’ve deposited. Once you withdraw your deposited assets, extra funds earned through the ‘a_Token_’ will be credited to your account.
For example, depositing 1 ETH will give you 1 aETH, which will slowly grow in balance as time goes on. When you withdraw, that extra balance will be credited to you.
Using Aave to borrow ERC20 tokens and stablecoins
Step 1. You’ll first need to deposit assets to use as collateral, which can be completed in the section above. After you’re done, head to the ‘Borrowings’ tab on the Dapp.
The “You Borrowed” section refers to the Total Amount you’ve borrowed, including different types of assets. It will also show you how much you have left to borrow, signified by the “__% Available” phrase.
“Your Collateral” shows the total you have deposited for use as collateral. This is similar to the “Aggregated Balance” from your Deposits page.
Note the ‘Loan to value’ percentage at the bottom of this page. This is the amount of borrowing power your deposited assets hold displayed in a weighted average. For example, 1 ETH at 80% Loan to value will allow 0.8 ETH’s worth of assets to be borrowed.
Step 2. Select the green button that says ‘Borrow’ to see the full list of assets you can borrow. Each asset has different interest rates that will need to be paid back after you’re done with the loan.
You can filter the list between Stablecoins and All using the ticker located at the top-left of the list.
Step 3. Once you begin the borrowing process, you will need to choose between a Stable and Variable rate of interest. Choose the rates that work best for you, listed under the ‘Stable APY’ and ‘Variable APY’ categories. Some assets offer both options, while others are tied to just one.
If your asset offers both, you can switch between the two rate types whenever you want.
Step 4. You can borrow multiple types of assets, but keep an eye on your Health Factor. This number represents the amount you’ve borrowed in relation to the amount you’ve deposited. If your Health Factor reaches 1 or below, your deposited assets become at risk of being liquidated.
To raise your health factor, pay back some of your borrowed assets or deposit more for collateral.
Step 5. When you’re paying back your borrowed assets, you’ll need to pay a little extra to cover any interest accrued during the loan period. All of the assets listed can be swapped from our Swap section through one of our providers.