FAQ
What is Aave?​
Aave is a decentralised non-custodial liquidity market protocol where users can participate as suppliers or borrowers. Suppliers provide liquidity to the market to earn a passive income, while borrowers are able to borrow in an overcollateralised (perpetually) or undercollateralised (one-block liquidity) fashion.
Please join the Aave community Discord server; the Aave team and members of the community look forward to helping you understand and use Aave.
Why Aave?​
Aave Protocol has been audited and secured. The protocol is completely open source, which allows anyone to interact with a user interface client, API or directly with the smart contracts on the Ethereum network. Being open source means that you are able to build any third-party service or application to interact with the protocol and enrich your product.
How do I interact with Aave protocol?​
In order to interact with Aave protocol, you simply supply your preferred asset and amount. After supplying, you will earn passive income based on the market borrowing demand. Additionally, supplying assets allows you to borrow by using your supplied assets as a collateral. Any interest you earn by supplying funds helps offset the interest rate you accumulate by borrowing.
What is the cost of interacting with Aave protocol?​
Interacting with the protocol requires transactions and so transaction fees for Ethereum Blockchain usage, which depend on the network status and transaction complexity.
Where are my supplied funds stored?​
Your funds are allocated in a smart contract. The code of the smart contract is public, open source, formally verified and audited by third party auditors. You can withdraw your funds from the pool on-demand or export a tokenised (aTokens) version of your lender position. aTokens can be moved and traded as any other cryptographic asset on Ethereum. Address Screening
Why is my wallet blocked?​
We receive blockchain intelligence provided by TRM Labs. TRM combines on-chain data and real-world investigations to identify financial crime and other prohibited activities. This data blocks wallets from app.aave.com that are associated with certain legally prohibited conduct.If you believe your address has been incorrectly flagged, please contact help@aave.com.
What information is shared with TRM Labs?​
Your address is shared with TRM, but no metadata is tracked or shared. The request from the UI is routed to the Aave hosted API, which is used as a proxy endpoint, and the address is passed directly through to the TRM service. Users' IP addresses are not shared with TRM.
Is there any risk?​
No platform can be considered entirely risk free. The risks related to the Aave platform are the smart contract risk (risk of a bug within the protocol code) and liquidation risk (risk on the collateral liquidation process). Every possible step has been taken to minimise the risk as much as possible-- the protocol code is public and open source and it has been audited. Additionally, there is an ongoing bug bounty campaign live and running.
You can find additional risk and security related information in the risk framework and security and audits sections.
How are staking rewards distributed?​
The previous day’s collected protocol trading fees are earned by LOOKS stakers as rewards. Reward rates are adjusted roughly every 24 hours, based on the past 24 hours’ trading activity.
How do I unpair my liquidity pair tokens?​
How much of my total token supply should I dedicate to my staking or reward pool?​
There is no one-size fits all approach. However, on average we’ve seen that projects dedicate anywhere from 5-20% for rewards and ecosystem incentives.
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Glossary​
If you are unsure about any specific terms feel free to check the Glossary.
Mobile App​
Be careful, dApploy does not operate a downloadable mobile application at this time. If you find one, it is a scam. dApploy would never ask you for you seed passphrase ever.
Additional information and resources about Aave​
Feel free to refer to the White Paper for a deeper dive into Aave Protocol mechanisms. Developers can access the Documentation for a technical description of the Aave decentralised lending pool protocol. For a detailed risk analysis, please visit the risk framework.