Platforms: Flagship | Assembly
(Image or Tutorial)
What is AAVE
AAVE is a decentralized protocol for liquidity markets. AAVE is maintained and governed by its native token AAVE. AAVE allows users to deposit and borrow assets from the protocol as well as gain interest by providing liquidity.
The AAVE protocol currently does not allow USDT, BUSD, and sUSD as collateral, however, deposits still earn interest.
How does lending work on AAVE?
Assets deposited into AAVE have a Collateral Factor or a Loan to Value. The Collateral factor is the percentage of value that can be borrowed against a particular asset.
Liquidation Level is the maximum amount of debt that a user can hold against a particular asset. Instadapp calculates the average liquidation level of all the assets supplied to create the Maximum Debt to Collateral Ratio
AAVE Protocol, unlike Compound Finance, uses two parameters to determine the value of assets as deposits (Collateral Factor) and the value of assets as credit. (Liquidation Level)
How do AAVE liquidations work?
If an AAVE position becomes undercollateralized a liquidation process can occur. Liquidations will completely repay the outstanding debt along with a liquidation fee. Liquidation fees are subject to change according to the AAVE protocol.
Protection Automation is
Collateral Factor location in GUI
⚗️ Available Functions
🙌 Supply - Deposits asset from DSA to Compound ⬆️ Withdraw - Withdraws asset from Compound back to DSA ↩️ Borrow - Borrows asset, asset is withdrawn to DSA ⤵️ Payback - Spend asset on DSA to payback debt on Compound
⚖️ Leverage / Max AAVE or MATIC - Borrows asset, converts to collateral and when collateral surges or maximizes AAVE(Mainnet)/MATIC(Polygon) returns.
🪀 Save / Unwind AAVE or MATIC - Withdraws collateral, and immediately converts asset to payback debt or unwind AAVE (Mainnet)/MATIC (Polygon) mining. ⤵️⬆️ Payback and Withdraw - Payback debt from DSA, and withdraws asset back to DSA
Deposit & Borrow - Deposits asset from DSA to AAVE, and borrows asset.
💱 Collateral Swap - Swap the underlying collateral asset for another collateral asset 💱 Debt Swap - Swaps owed debt from one asset into another debt to be owed
Want to learn more about strategies? See 🔷 Strategies→