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Your Definite Guide on How to use AAVE App


cryptoticker.io 11 March 2021 18:43, UTC
Reading time: ~3 m

This article is a comprehensive guide on how to use Aave app. We will take you step-by-step throughout the platform and help you understand the mechanics of using a lending platform.

Aave is one of the fastest-growing Lending and Borrowing DeFi Platforms. Growth has been exceptional both for the platform and the token Aave. This token is currently priced at USD 400, and made in 6 months a massive 700% price increase.

What is Aave App?

As a platform, Aave is one of the few DeFi platforms that allows users to get “Flash Loans” and even earn interest on your cryptos. They also offer one of the highest rates in the whole DeFi space. So without further ado, let’s dive in and see how to connect to the platform, how to deposit, and all the other features that enable you to get the most out of your cryptocurrency lending and borrowing.

Does Aave run on Ethereum?

Yes! Aave Token is built based on the ERC-20 standard, and is by nature deflationary. You can buy Aave tokens at several big exchanges including Binance.

How to use Aave?

Easy! here’s a step-by-step guide on how to use the Aave platform from start to finish.

Step 1 – How to Sign up to Aave

Go to Aave.com, where you’ll reach the main landing page. Here, you can see a list of assets that you can earn on or borrow. You can also see each asset’s market size, price, Annual Percentage Yield (APY, which is the return you’ll earn for depositing), and Annual Percentage Rate (APR, which is the cost of borrowing). From here, you click on “Enter App”.

Aave Main Page

Step 2 – What is Aave Market V1 and V2

Once you’re inside the Aave app, you are by default in V2, but you can switch between Aave market V1 and Aave market V2. The toggle is present on the top-right of the header. What’s the difference you might ask? Great question.:

  • Aave Market V1 lets you borrow with stable coins and variable interest rates. You can only borrow once, meaning one borrow request for each asset and wallet.
  • Aave Market V2 is an updated version, where users can do exactly what V1 does, but now you can borrow multiple times from the very same wallet, and the very same asset…It’s like taking two loans in USD from the very same bank, neat!

Aave Main App

Step 3 – How to connect Metamask and Wallet to Aave platform

Now, go and press the “Connect” button, also at the top-right header to connect an existing wallet. You’ll be prompted to connect your wallet. You can choose to pick from a selection of External Providers such as Coinbase, or even link your browser wallet (Metamask, Trustwallet…). The connection happens via a QR code…Super easy.

Connect your wallet

Step 4 – How to use Aave

Once connected, you are inside the platform. Now you can see that same Main Page view, but while being connected. Also, since your wallet is connected, you are able to deposit, borrow, swap, stake and participate in Aave governance…basically, you’re unstoppable!

Dashboard specific view
Governance specific view

Is Aave a Good Investment?

Aave is a very interesting platform, that is easy to use and intuitive. They have one of the highest rates APYs in the DeFi industry. Everything they promised is being applied while respecting their timeline. Their token lets its holders invest directly in the project, while having a choice on what happens in the future plans. It is definitely a solid investment in the DeFi space.

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