DeFi Unlocked: How to Earn Interest Lending Crypto using Aave – Cryptonews

DeFi Unlocked: How to Earn Interest Lending Crypto using Aave 101
Source: a screenshot, Instagram/aave.aave

DeFi is all the rage in the digital asset market. There is seemingly something for everyone among the crypto-savvy folk, from incredibly high-yielding (and unsustainable) new protocols to established blockchain-powered savings apps.

In our new “DeFi Unlocked” series, we will introduce you to the different ways you can make money in the booming decentralized finance market.

This time, we will look at the Aave protocol and explain how you can earn interest by lending cryptoassets using the popular DeFi lending app.

What is Aave?

Aave Protocol is an open-source, non-custodial money market protocol that enables cryptoasset users to borrow and lend Ethereum-based cryptoassets.

The aim of Aave – which means ghost in Finnish – is to provide an open and transparent marketplace for decentralized financial products and services.

Aave supports a wide range of Ethereum-based assets, including BAT, ETH, DAI, USDC, TUSD, USDT, BUSD, and more. Deposit APYs (annual percentage yields) ranged from 0.18% to 25.01% across all available assets, at the time of writing.

Interest is paid in aTokens, which are minted upon deposit and burned upon withdrawal. Each aToken is pegged 1:1 to the underlying asset. So, if you deposit ETH, for example, you will receive aETH as interest. Interest payments accrue on a minute-to-minute basis.

Source…

|

.