Intro
DeFi (Decentralized Finance)has been really popular recently. To educate users and make them equipped with more knowledge about DeFi and LM (Liquidity Mining), ProEX begins DeFi Classroom Program. Today, we would like to share with you guys the background and tutorial to use Aave.
What is Aave?
Aave is an open source and non-custodial protocol enabling the creation of money markets. Users can earn interest on deposits and borrow assets. Aave supports 17 different cryptocurrencies.
How to Lend on Aave
- To get started with Aave, visit https://app.aave.com/ and connect using a web 3.0 wallet such as Metamask, Coinbase Wallet or Fortmatic.
- To deposit funds, select an asset and enter the amount you wish to lend. From here, simply approve Aave’s access to the chosen asset, and sign the transaction for the deposit.
Remember: Any action you make on Ethereum always cost ETH in your balance as gas fee, and the gas fee will affect both the speed of your transactions and your profit.
2. Click on the “Access” Button below and it will re-direct you to https://app.aave.com/ with the below wallet options.
3. Select the wallet options. Take MetaMask for example in this article and you will be prompted to connect the MetaMask wallet to Aave Protocol.
4. When you click Connect, you will be presented with the below screen and you will see the Deposit option on the left Menu.
5. Click “Deposit” and it would lead you to the page below. This page shows the available assets in your wallet with APY [Annual percentage yield] rate for this currency. Example: DAI with 2.04% APY and ETH with 0.16% APY
6. Click “Deposit” from the list of currency. In this article, I clicked on DAI Deposit Button & entered the amount as 10 DAI to deposit.
7. Click on Continue after entering the amount and you will be promoted to approve the transaction.
8. Now MetaMask will prompt to connect your wallet to DAI Smart Contract and clicking on confirm to submit transaction to Ethereum Blockchain.
9. Once the transaction is completed. You will see the below screen to deposit the amount in AAVE.
10. Click on the submit button and deposit 10 DAI from your wallet to AAVE Lending Pool.
11. We have successfully deposited DAI into Aave lending pool. We now start earning interests!
Notes.
Digital assets are a high-risk investment and investors are advised to purchase with caution and be aware of the investment risks.
The information provided in the article does not constitute investment advice, financial advice, trading advice, or any other sort of advice and you should not treat any of the website’s content as such.
