E-Mode
Efficiency Mode can allow higher capital efficiency for correlated assets within the same category, such as certain stablecoin or ETH-related positions. Review the Aave V3 overview before relying on it.
Supply, borrow and earn
A clean guide to Aave V3 markets, supplied collateral, borrowing, rates and liquidation risk.
Live preview — open Aave V3 to open.
On-chainNon-custodial
What is Aave V3?
Aave V3 is a non-custodial liquidity protocol where users can supply assets, earn variable interest, and borrow against over-collateralized positions. It runs through smart contracts on Ethereum and other supported networks, with governance-approved markets and risk parameters. The official Aave V3 overview explains its supply, borrow, interest-rate, liquidation, E-Mode, Isolation Mode and siloed borrowing mechanics.
How Aave V3 works
Aave V3 is organized around liquidity pools. Suppliers add assets to a market, and borrowers access liquidity by posting more collateral value than they borrow.
- Choose the marketPick the chain and Aave market you intend to use, then verify the asset versions and smart-contract addresses.
- Supply collateralSupplying creates interest-bearing aTokens and can optionally enable the asset as collateral for borrowing.
- Borrow conservativelyBorrowed balances accrue interest and are tracked against collateral value through the health factor.
- Monitor the positionPrice moves, interest accrual, withdrawals or collateral changes can lower health factor and make liquidation possible.
Features and risk controls
V3 adds market-level controls designed to improve capital efficiency while limiting how specific assets can affect the wider protocol.
Isolation Mode
Isolation Mode limits how selected collateral assets can be used, including what can be borrowed and under what debt ceiling. Current values are surfaced in Aave's parameters dashboard.
Siloed borrowing
Siloed borrowing can restrict a user who borrows a flagged asset from having other active borrows in the same pool. Aave documents this reserve-level control in its V3 feature notes.
Fees, rates and security
There is no single universal cost for using Aave V3. Costs and risk depend on the chain, asset, utilization, wallet approvals and market parameters.
Cost components
Expect network gas, variable borrow interest, reserve-factor effects, liquidation penalties if liquidated, and any spread from external swaps. Aave describes utilization-driven rates in the interest-rate section.
Smart-contract risk
Aave is non-custodial, but smart-contract, oracle, governance and market risks remain. Start with Aave's own risk documentation.
Official access
Use verified links and avoid search ads or downloaded mobile apps that claim to be Aave. The accessing Aave guide lists official interfaces and a scam notice.
Aave V3 Markets
Aave V3 markets are chain-specific, so liquidity, supported assets, gas and risk settings can differ.
Ethereum Core
Main Ethereum V3 market Mainnet
Aave describes Ethereum Core as its broad, risk-adjusted market for diverse assets. It is usually the first market to compare before moving to L2s.
Open ↗Base
L2 market L2
Base gives Aave users an L2 environment with separate liquidity and transaction costs. Confirm bridged asset versions before supplying.
Open ↗
Arbitrum
L2 market L2
Arbitrum has its own Aave V3 pool configuration and risk parameters. Treat it as a separate market rather than a mirror of Ethereum.
Open ↗
Optimism
OP Stack market L2
Optimism can reduce transaction friction, but supported collateral and borrow assets are still market-specific. Check the live parameters first.
Docs ↗
Polygon
Polygon PoS market PoS
Polygon has long-running Aave usage and its own asset list. Verify whether you are using V3 rather than older deployments.
Open ↗
Avalanche
C-Chain market L1
Avalanche C-Chain support gives borrowers and suppliers another market with distinct liquidity and gas conditions. Review asset parameters before entering.
Open ↗Core Aave V3 Actions
These are the practical actions and checks most users should understand before interacting with a market.
Supply
Deposit assets to a pool Earn
Supplying adds liquidity and mints aTokens. Withdrawals depend on available unborrowed liquidity and any active borrow position.
Docs ↗Borrow
Use collateral for liquidity Debt
Borrowing creates a debt balance that accrues interest. Keep enough collateral buffer for price movement and rate changes.
Docs ↗Health Factor
Liquidation risk signal Risk
Health factor summarizes whether collateral is safely above liquidation thresholds. Falling below the liquidation threshold can trigger liquidators.
Docs ↗Parameters
Caps and collateral rules Rules
Loan-to-value, liquidation thresholds, caps and isolation settings are asset-specific. Use the dashboard rather than assuming old values still apply.
Docs ↗Addresses
Verify contracts Verify
Contract verification matters when using wallets, block explorers or integrations. Aave maintains official address resources for supported deployments.
Docs ↗Aave V3 FAQ
Is Aave V3 a wallet or an exchange?
Neither in the usual sense. Aave V3 is a non-custodial liquidity protocol for supplying and borrowing assets through smart contracts. Interfaces can help users interact with it, but the protocol itself is onchain infrastructure. Start with the official Aave V3 overview.
Can I lose money by supplying to Aave V3?
Yes. Supplying avoids direct borrower credit risk because positions are over-collateralized, but it still has smart-contract, oracle, governance, liquidity and asset-price risk. If your supplied asset is used as collateral, borrowing against it adds liquidation risk. Aave summarizes protocol risks in its risk documentation.
How do Aave V3 borrow rates work?
Borrow rates are variable and respond to utilization in each reserve. Higher utilization generally pushes rates upward, and supplier yield comes from borrower interest after reserve-factor effects. Do not assume a fixed APY from a screenshot or old article; check the current market in the official Aave app.
What is liquidation on Aave V3?
Liquidation can happen when a borrow position's health factor falls below the required threshold. A liquidator repays part of the debt and receives collateral according to reserve rules. Aave's V3 docs explain health factor, liquidation thresholds and liquidation bonus at a high level.
Which chains support Aave V3?
Aave V3 is deployed on multiple mainnet networks approved through Aave governance, including Ethereum markets and several L2 and alternative chain deployments. The exact set can change, so use Aave's official deployments list instead of relying on a static article.
How should I verify an Aave V3 link?
Start from Aave's official site, docs or app, then inspect the wallet prompt before approving anything. Aave warns that it does not have a downloadable mobile app and will never ask for a seed phrase. Read the accessing Aave notice before connecting.