Aave is an open-source and non-custodial protocol to earn interest on deposits and borrow assets. The protocol's native token is called AAVE, which serves as a governance token that lets the community decide the direction of the protocol in a collective manner.
Calculate how much you can earn by staking Aave. Results vary based on the staking amount, term, and type selected.
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- What is Aave Staking?
- What is the incentive for staking?
- What is the risk of staking?
- How do i start staking AAVE?
- Approve: This is a required transaction prior to the staking allowing the staking contract to move your AAVE tokens. This transaction won’t be required if you perform additional staking actions unless you revoke the approval.
- Stake AAVE: This transaction performs the action to stake AAVE tokens. When confirmed, your tokens will be staked in the Safety Module.
- How do i unstake AAVE?
- What is Aave (AAVE)?
- Who is the team behind Aave?
- What's the initial token distribution of AAVE?
Staking essentially means depositing AAVE tokens within the protocol Safety Module. The purpose of staking is to act as a mitigation tool in case of a shortfall event. As an incentive to protect the protocol Safety Module stakers will receive AAVE as Safety Incentives (SI). The initial SI rewards are 400 AAVE/day to be distributed among the stakers. There may be a possibility for stakers to receive a percentage of protocol fees, but that will come later if the governance votes on it.
Stakers within the Safety Module receive Safety Incentives. The initial SI rewards are 400 AAVE/day. The Safety Incentive’s allocation quarterly date should be voted on before the end of the 3 months (90 days) distribution schedule. In the case of a late or no vote on a new SI allocation plan, the current allocation will continue until a vote or until the Ecosystem Reserve is empty.
You can calculate the estimated return considering any % of the eligible supply being staked in the Aave Staking Calculator.
In the case of a shortfall event, the Safety Module uses up to 30% of the assets locked to cover the deficit. This protocol protection won’t be active on the initial launch, so, for now, your stake will not have any risk of getting slashed. Aave will inform the community when the slashing is activated.
AAVE holders can start staking AAVE right away by heading to the Aave DApp and connecting their wallet. From there, head to the staking section in the menu. Over the staking section select ‘stake’, input the amount to stake, and click on ‘stake’. Then proceed to send 2 transactions to participate in the staking:
In order to unstake your AAVE from the Safety Module, you will need to activate a cooldown period. You can start the cooldown period by going to the staking section, select ‘unstake’ and click on ‘activate cooldown’. It will require one transaction to be sent.
The cooldown period by default is 10 days, but this can be further extended by the governance.
After the cooldown period is over, you can select ‘unstake’ and confirm the transaction. Your AAVE will be sent to your wallet.
Aave (fun fact: the name is taken from the Finnish word for “ghost”) is a decentralized, open-source, and non-custodial protocol for money market creation on Ethereum. Depositors earn interest by providing liquidity to lending pools, while borrowers can obtain loans by tapping into these pools with variable and stable interest rate options. Aave Protocol is unique in that it tokenizes deposits as aTokens, which accrue interest in real time. It also features access to Flash Loans and Credit Delegation as uncollateralized loan options.
Aave, formerly known as “ETHLend”, was founded in 2017 by Stani Kulechov. Headquartered in Shoreditch, London, the Aave team is made up of a diverse team of innovators across the globe who are actively shaping the future of finance.
AAVE have been 1:1 migrated from LEND token. 13m tokens can be redeemed by LEND holders. 3m tokens are allocated towards the Aave Ecosystem Reserve.