Learn how Aave works
Short guides written for people, not protocols. Each one links to the live data it explains.
How Aave interest rates work
Aave borrow and supply rates follow utilization. Learn how the kinked rate curve, its two slopes, optimal utilization and the reserve factor set the rate.
APR vs APY on Aave
Aave contracts store interest as an APR that compounds every second, while the app shows APY. See the formula, a worked example and why the gap is often small.
Why your average Aave rate differs from the current rate
The Aave rate on screen is a snapshot. Short spikes raise what borrowers really pay. See how the borrow index reveals the true average rate of a loan.
Aave health factor explained
Health factor shows how close an Aave loan is to liquidation. Learn the formula, how max LTV differs from liquidation threshold, and what moves the number.
How Aave liquidations work
When an Aave health factor falls below 1, liquidators can repay part of the debt and claim collateral plus a bonus. See how it works and how to avoid it.
Aave E-Mode explained
E-Mode lets Aave users borrow more against collateral that moves in step with their debt, such as stablecoins or staked ETH. Learn the rules and trade-offs.
Aave supply and borrow caps explained
Supply and borrow caps limit how much of an asset Aave accepts. Learn why they exist, what happens at the cap, and how Aave freezes or shuts an asset.
What is GHO, Aave's stablecoin?
GHO is Aave's overcollateralized stablecoin. Users mint it by borrowing against collateral, and governance sets the rate. Learn how it works and what sGHO is.
aTokens and debt tokens explained
Supplying to Aave gives you aTokens, and borrowing gives you debt tokens. Learn why both balances grow every block and how Aave's two indexes make that work.
Aave V4 explained: hubs, spokes and risk premiums
Aave V4 replaces separate markets with shared hubs and lighter spokes, and adds a personal risk premium to borrowing. A plain-language guide to what changed.
How to borrow on Aave: a step-by-step guide
Borrow on Aave step by step: supply collateral, see how much you can borrow, check your health factor, repay, withdraw, and understand the main risks.
Aave fees: what lending and borrowing cost
Every cost on Aave in one place: borrow interest, the reserve factor, liquidation penalties, flash loan fees, gas and app swap fees, with who gets each one.
Is Aave safe? The real risks explained
An honest look at Aave's risks for lenders and borrowers: smart contracts, oracles, liquidation, bad debt, depegs and bridges, with real past incidents.
Aave flash loans explained
An Aave flash loan needs no collateral, as long as it is repaid in the same transaction. Learn how it works, what it costs and what people use it for.
Aave vs Compound vs Morpho: how they differ
Aave, Compound and Morpho all lend crypto against collateral, but they set risk, rates and liquidations differently. A neutral, plain English comparison.
Aave glossary: every term explained in plain English
Plain English definitions of the Aave terms you will meet: APY, utilization, health factor, LTV, liquidation threshold, E-Mode, aTokens, hubs and spokes.