What is Aave (AAVE) and what is it used for?

Aave is a decentralized finance (DeFi) protocol built on Ethereum that enables users to lend and borrow cryptocurrencies without intermediaries. Lenders deposit assets into liquidity pools to earn interest, while borrowers can take loans by providing collateral. AAVE is the native governance and utility token of the protocol, used for protocol upgrades, fee discounts, and staking. Holders can participate in governance proposals and potentially earn staking rewards by locking AAVE in the Safety Module, which adds an extra layer of security to the protocol. If you’re seeking passive income or more flexible borrowing options, Aave provides a mature and widely adopted DeFi option.

How does staking AAVE work and what are the benefits and risks?

Staking AAVE typically involves locking tokens into the protocol’s Safety Module (SM) to act as a reserve that can be burned to cover protocol shorts in extreme events. In exchange for this risk-bearing commitment, stakers may earn safety incentives and accrue governance rights. Benefits include enhanced security for the protocol and potential fee or reward incentives, plus a stronger voice in governance. Risks include the possibility of losing staked AAVE if the protocol incurs losses that require using the Safety Module, as well as price risk from holding a volatile asset. Always review current terms on the official Aave governance portal and only stake what you can afford to lock for the agreed duration.

What factors influence AAVE’s price and how can I assess its risk?

AAVE’s price is influenced by protocol usage, total value locked (TVL), overall DeFi adoption, market conditions, and tokenomics (including circulating supply vs. max supply). Positive catalysts include increased borrowing activity, new assets supported, or protocol improvements that reduce risk. Negative factors include competition from other DeFi lending protocols, security incidents, or adverse market moves that reduce liquidity. To assess risk, monitor metrics like TVL, number of active lenders/borrowers, borrowing rates, and the health of collateralization ratios across assets. Diversification and a clear understanding of the role of AAVE in governance and security modules help manage exposure.

Where can I buy and store AAVE safely, and what should I know about wallets and fees?

AAVE can be purchased on major centralized exchanges and most decentralized exchanges that list the token. For storage, choose wallets that support ERC-20 tokens and Aave’s governance features, such as popular hardware wallets (e.g., Ledger) and reputable software wallets (e.g., MetaMask with proper security practices). When transferring, be mindful of gas fees on Ethereum, which can vary with network congestion. Use secure wallet recovery phrases, enable two-factor authentication on exchange accounts, and consider using a hardware wallet for larger holdings. Always verify contract addresses and avoid phishing sites to protect your funds.

What are common use cases for AAVE beyond staking, and how does it interact with other DeFi protocols?

Beyond staking, AAVE’s governance token enables users to vote on protocol upgrades and risk parameters. The Aave protocol provides leverage-free borrowing and over-collateralized loans, flash loans, and liquidity mining opportunities. AAVE tokens also incentivize participation in governance and risk management. Interoperability with other DeFi protocols occurs through common ERC-20 standards and liquidity pools; AAVE often appears in yield farming, automated market maker (AMM) integrations, and cross-chain bridges via supported Layer 2 solutions or forks. Understanding these interactions helps users optimize liquidity, risk, and potential yield across ecosystems.

Aave (AAVE) Lending Rates Up to 12% APY

Find the best AAVE lending rates and earn up to 12% APY. Compare 12 platforms side-by-side.

Last updated: January 12, 2026|Advertising disclosure

Aave Lending Guide

How to lend Aave

Crypto lending guide

Aave (AAVE) Lending Rates Up to 12% APY

Find the best AAVE lending rates and earn up to 12% APY. Compare 12 platforms side-by-side.

Last updated: January 12, 2026|Advertising disclosure

Compare Aave (AAVE) Lending Rates

Platform	Action	Max Rate	Base Rate	Min Deposit	Lockup	US Access
Nexo	Go to Platform	4% APY	1% APY	—	30 days	Check terms
YouHodler	Go to Platform	12% APY	—	—	—	Not US
Gemini	Go to Platform	0.01% APY	—	—	—	US Available
Klink	Go to Platform	3.68% APY	—	—	—	Check terms
Blockchain.com	Go to Platform	2% APY	—	—	—	Check terms
Kucoin	Go to Platform	0.11% APY	—	—	—	Check terms
Aave	Go to Platform	0% APY	—	—	—	Check terms

Historical Aave lending rates (the United States)

Rates shown are the headline rates we track for the United States users; actual rates may vary by product, tier, or terms.

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YouHodler currently offers the highest Aave lending rate in the United States at 12.00% APY, matching its 30-day average of 12.00%.

30-DAY AVERAGE RATESArrows compare today vs 30-day average

Provider	Current Rate	Trend	Average Rate
YouHodler	12%	-	avg 12%
Nexo	4%		avg 2.77%
Gemini	0.01%	-	avg 0.01%
Best 30-day averageYouHodler (12% APY)

Last updated: Feb 17, 2026, 08:10 PM

Platform Safety Information

We evaluate each platform's regulatory status, transparency, and track record.

Platform	Regulatory Status	Proof of Reserves	Track Record	Insurance
Nexo	EU (VARA Dubai, Multiple VASPs)	2024-12 (Armanino)	Has issues	Custodial insurance
Gemini	US (NYDFS, FinCEN)	2024-12 (Big Four (SOC 2))	Has issues	Digital asset insurance

How we gather this information

Aave Lending Guide

How to lend Aave

Crypto lending guide

Frequently Asked Questions About Aave (AAVE) Lending

What is Aave (AAVE) and what is it used for?: Aave is a decentralized finance (DeFi) protocol built on Ethereum that enables users to lend and borrow cryptocurrencies without intermediaries. Lenders deposit assets into liquidity pools to earn interest, while borrowers can take loans by providing collateral. AAVE is the native governance and utility token of the protocol, used for protocol upgrades, fee discounts, and staking. Holders can participate in governance proposals and potentially earn staking rewards by locking AAVE in the Safety Module, which adds an extra layer of security to the protocol. If you’re seeking passive income or more flexible borrowing options, Aave provides a mature and widely adopted DeFi option.
How does staking AAVE work and what are the benefits and risks?: Staking AAVE typically involves locking tokens into the protocol’s Safety Module (SM) to act as a reserve that can be burned to cover protocol shorts in extreme events. In exchange for this risk-bearing commitment, stakers may earn safety incentives and accrue governance rights. Benefits include enhanced security for the protocol and potential fee or reward incentives, plus a stronger voice in governance. Risks include the possibility of losing staked AAVE if the protocol incurs losses that require using the Safety Module, as well as price risk from holding a volatile asset. Always review current terms on the official Aave governance portal and only stake what you can afford to lock for the agreed duration.
What factors influence AAVE’s price and how can I assess its risk?: AAVE’s price is influenced by protocol usage, total value locked (TVL), overall DeFi adoption, market conditions, and tokenomics (including circulating supply vs. max supply). Positive catalysts include increased borrowing activity, new assets supported, or protocol improvements that reduce risk. Negative factors include competition from other DeFi lending protocols, security incidents, or adverse market moves that reduce liquidity. To assess risk, monitor metrics like TVL, number of active lenders/borrowers, borrowing rates, and the health of collateralization ratios across assets. Diversification and a clear understanding of the role of AAVE in governance and security modules help manage exposure.
Where can I buy and store AAVE safely, and what should I know about wallets and fees?: AAVE can be purchased on major centralized exchanges and most decentralized exchanges that list the token. For storage, choose wallets that support ERC-20 tokens and Aave’s governance features, such as popular hardware wallets (e.g., Ledger) and reputable software wallets (e.g., MetaMask with proper security practices). When transferring, be mindful of gas fees on Ethereum, which can vary with network congestion. Use secure wallet recovery phrases, enable two-factor authentication on exchange accounts, and consider using a hardware wallet for larger holdings. Always verify contract addresses and avoid phishing sites to protect your funds.
What are common use cases for AAVE beyond staking, and how does it interact with other DeFi protocols?: Beyond staking, AAVE’s governance token enables users to vote on protocol upgrades and risk parameters. The Aave protocol provides leverage-free borrowing and over-collateralized loans, flash loans, and liquidity mining opportunities. AAVE tokens also incentivize participation in governance and risk management. Interoperability with other DeFi protocols occurs through common ERC-20 standards and liquidity pools; AAVE often appears in yield farming, automated market maker (AMM) integrations, and cross-chain bridges via supported Layer 2 solutions or forks. Understanding these interactions helps users optimize liquidity, risk, and potential yield across ecosystems.

Aave AAVE News

February 16, 2026Grayscale Files With SEC to Convert Aave Trust Into ETF

Grayscale has sought SEC approval to convert its Aave token trust into the Grayscale Aave Trust ETF, which would launch on NYSE Arca under the ticker symbol “GAVE.”

February 13, 2026AAVE Price Still Under Duress Despite New Governance Model

AAVE launches new governance model, but persistent exchange inflows and weak sentiment keep price near $109 support.

February 13, 2026Aave Labs Seeks $50M Package in Revenue Shift Proposal

Aave Labs proposes redirecting product revenue to the DAO and ratifying Aave V4 under a new revenue framework.

Frequently Asked Questions About Aave (AAVE) Lending

What is Aave (AAVE) and what is it used for?: Aave is a decentralized finance (DeFi) protocol built on Ethereum that enables users to lend and borrow cryptocurrencies without intermediaries. Lenders deposit assets into liquidity pools to earn interest, while borrowers can take loans by providing collateral. AAVE is the native governance and utility token of the protocol, used for protocol upgrades, fee discounts, and staking. Holders can participate in governance proposals and potentially earn staking rewards by locking AAVE in the Safety Module, which adds an extra layer of security to the protocol. If you’re seeking passive income or more flexible borrowing options, Aave provides a mature and widely adopted DeFi option.
How does staking AAVE work and what are the benefits and risks?: Staking AAVE typically involves locking tokens into the protocol’s Safety Module (SM) to act as a reserve that can be burned to cover protocol shorts in extreme events. In exchange for this risk-bearing commitment, stakers may earn safety incentives and accrue governance rights. Benefits include enhanced security for the protocol and potential fee or reward incentives, plus a stronger voice in governance. Risks include the possibility of losing staked AAVE if the protocol incurs losses that require using the Safety Module, as well as price risk from holding a volatile asset. Always review current terms on the official Aave governance portal and only stake what you can afford to lock for the agreed duration.
What factors influence AAVE’s price and how can I assess its risk?: AAVE’s price is influenced by protocol usage, total value locked (TVL), overall DeFi adoption, market conditions, and tokenomics (including circulating supply vs. max supply). Positive catalysts include increased borrowing activity, new assets supported, or protocol improvements that reduce risk. Negative factors include competition from other DeFi lending protocols, security incidents, or adverse market moves that reduce liquidity. To assess risk, monitor metrics like TVL, number of active lenders/borrowers, borrowing rates, and the health of collateralization ratios across assets. Diversification and a clear understanding of the role of AAVE in governance and security modules help manage exposure.
Where can I buy and store AAVE safely, and what should I know about wallets and fees?: AAVE can be purchased on major centralized exchanges and most decentralized exchanges that list the token. For storage, choose wallets that support ERC-20 tokens and Aave’s governance features, such as popular hardware wallets (e.g., Ledger) and reputable software wallets (e.g., MetaMask with proper security practices). When transferring, be mindful of gas fees on Ethereum, which can vary with network congestion. Use secure wallet recovery phrases, enable two-factor authentication on exchange accounts, and consider using a hardware wallet for larger holdings. Always verify contract addresses and avoid phishing sites to protect your funds.
What are common use cases for AAVE beyond staking, and how does it interact with other DeFi protocols?: Beyond staking, AAVE’s governance token enables users to vote on protocol upgrades and risk parameters. The Aave protocol provides leverage-free borrowing and over-collateralized loans, flash loans, and liquidity mining opportunities. AAVE tokens also incentivize participation in governance and risk management. Interoperability with other DeFi protocols occurs through common ERC-20 standards and liquidity pools; AAVE often appears in yield farming, automated market maker (AMM) integrations, and cross-chain bridges via supported Layer 2 solutions or forks. Understanding these interactions helps users optimize liquidity, risk, and potential yield across ecosystems.

Aave (AAVE) Lending Rates Up to 12% APY

Aave Lending Guide

Aave (AAVE) Lending Rates Up to 12% APY

Compare Aave (AAVE) Lending Rates

Historical Aave lending rates (the United States)

30-DAY AVERAGE RATESArrows compare today vs 30-day average

Platform Safety Information

Aave Lending Guide

Frequently Asked Questions About Aave (AAVE) Lending

Aave AAVE News

Frequently Asked Questions About Aave (AAVE) Lending

Aave AAVE News

Similar Coins to Lend

Newly Added Coins to Lend

Supported Lending Platforms

Compare Aave (AAVE) Lending Rates

Historical Aave lending rates (the United States)

30-DAY AVERAGE RATESArrows compare today vs 30-day average

Platform Safety Information