AAVE dApp on Ethereum
All about AAVE and how to connect to it with your Exodus Browser Extension.
In this article:
- What is AAVE?
- Do I need Ethereum to use AAVE?
- How do I connect my wallet to AAVE?
- How do I approve a transaction on AAVE?
- How do I disconnect my wallet from AAVE?
What is AAVE?
AAVE is a finance dApp that allows users to lend and borrow cryptocurrencies. AAVE eliminates the need for a middleman (such as a bank) and also removes the approval process for taking out a loan.
AAVE is also the Finnish word for ghost, which the developers chose to emphasize that the platform can be used anonymously.
Here's how it works.
Depositors lend their crypto to the AAVE smart contract to earn interest. Then, when someone wants to borrow from the AAVE protocol, it uses that deposited crypto to give to the borrower.
Borrowers have two loan options:
- An overcollateralized loan, where the borrower must put down collateral worth more than the amount that they're borrowing. For more information on overcollateralized loans, you can see AAVE's documentation on borrowing and liquidations.
- A flash loan, where the borrower can borrow any amount without putting down collateral as long as the loan is paid back within the same Ethereum block. For more on flash loans, see AAVE's documentation.
Any interest paid by the borrower goes to the lenders.
The AAVE protocol is completely open source and its code has been audited and secured. However, before interacting with any dApp, be sure to read more on DeFi hacks and bugs as well as intrinsic protocol risk in our guide: Safety and security for DeFi and dApps.
For more details on AAVE and how to use it, you can also go through AAVE's documentation .
Do I need Ethereum to use AAVE?
You can connect to and disconnect from AAVE without any ETH. However, any transactions you make in AAVE will incur network transaction fees, also known as gas fees. Ethereum gas fees can vary depending on network traffic.
You can use the Ethereum gas tracker on Etherscan to track Ethereum gas fees at any time.
How do I connect my wallet to AAVE?
To connect successfully, please ensure that you have enabled Prioritize Exodus and that Exodus Browser Extension is the only Ethereum browser extension installed. Questions? See all the details here.
- Go to aave.com and click Launch App.
- Click Agree.
- Click Connect wallet.
- Select Browser wallet.
- On the connection approval screen, click Connect.
How do I approve a transaction on AAVE?
- When lending or borrowing on AAVE, your browser extension will pop up and prompt you to approve the transaction.
- Click Approve.
How do I disconnect my wallet from AAVE?
- Open Exodus Browser Extension and click the Menu icon.
- Click Connections.
- Next to AAVE, click the delete icon.