How to Earn Aave (AAVE): A Step-by-Step Guide

Introduction

Lending Aave can be a great option for those who want to hold AAVE but earn yield. The steps can be a little daunting, especially the first time you do them. That's why we've put this guide together for you.

Step-by-Step Guide

1. Obtain Aave (AAVE) Tokens
In order to lend Aave, you need to have it. To obtain Aave, you'll need to purchase it. You can choose from these popular exchanges.
Platform Coin Price
Nexo Aave (AAVE) 168.26
PrimeXBT Aave (AAVE) 167.91
YouHodler Aave (AAVE) 167.92
Binance Aave (AAVE) 168.12
BTSE Aave (AAVE) 168.1
Coinbase Aave (AAVE) 167.96
See all 77 prices

Platform	Coin	Price
Nexo	Aave (AAVE)	168.26
PrimeXBT	Aave (AAVE)	167.91
YouHodler	Aave (AAVE)	167.92
Binance	Aave (AAVE)	168.12
BTSE	Aave (AAVE)	168.1
Coinbase	Aave (AAVE)	167.96

2. Choose a Aave Lender

Once you have AAVE, you'll need to choose a Aave lending platform to lend your tokens. You can see some options here.

Platform	Coin	Interest rate
Nexo	Aave (AAVE)	Up to 4% APY
YouHodler	Aave (AAVE)	Up to 12% APY
Aave	Aave (AAVE)	Up to 0% APY
Blockchain.com	Aave (AAVE)	Up to 2% APY

See all 12 lending rates

3. Earn Aave
Once you've chosen a platform to earn your Aave, transfer your Aave into your wallet in the earning platform. Once it's deposited, it will start earning interest. Some platforms pay interest daily, while others are weekly, or monthly.
4. Earn Interest
Now all you need to do is sit back while your crypto earns interest. The more you deposit, the more interest you can earn. Try to make sure your earning platform pays compounding interest to maximise your returns.

What to be Aware of

Lending your crypto can be risky. Make sure you do your research before depositing your crypto. Don't lend more than you're willing to lose. Check their lending practices, reviews, and how they secure your cryptocurrency.

Latest Movements

Aave (AAVE) is currently priced at $3.68 with a 24-hour trading volume of $592.95M. The market cap of Aave stands at $4.32B, with 15.04M AAVE in circulation. For those looking to buy or trade Aave, Nexo offers avenues to do so securely and efficiently

Market cap: $4.32B
24h volume: $592.95M
Circulating supply: 15.04M AAVE

See latest information

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.

Where and How to Earn Aave (AAVE)

What you'll learn