Before we dive into the specific steps of depositing to AAVE via the Axon app and receiving interest in return, we need to understand what AAVE's protocol is and how people borrow.

AAVE operates as a decentralized finance (DeFi) lending service. This platform enables instant borrowing of cryptocurrencies, using your own crypto holdings as collateral. Additionally, it offers the opportunity for users to lend their coins and earn interest.

Similar to a traditional bank, borrowers pay interest on loans while lenders receive interest on their deposits. However, unlike banks, there are no human loan officers or managers involved. Instead, smart contracts take the place of intermediaries.

The key functionality of AAVE lies in its use of "liquidity pools." Deposits are pooled together, providing a large reserve of cryptocurrency that the system uses for loans. This substantial pool allows for efficient and scalable loan distribution on demand. These smart contracts manage all aspects of the process, from lending to repayment, in a near-instantaneous manner. However, this automated system also means that in case their loan health drops below a certain threshold, borrowers have no recourse for extension or negotiation. In such cases, the smart contract strictly enforces the terms, leading to the automatic liquidation of the borrower's assets as per the pre-defined rules.

As a DeFi platform, AAVE often presents challenges in terms of user-friendliness and intuitiveness, primarily catering to those with more technical expertise. Our platform, however, simplifies access to its services, providing the added convenience of direct borrowing and lending in fiat currency.

*In case the amount lent to Aave is in fiat currency, the amount will be available for withdrawal in full only to the Trading wallet until the clearing period is over.

Via Axon’s app you can deposit any of the following coins: WETH, WBTC, USDC, DAI. The transfers are carried out through Avalanche's blockchain.

There's no minimum amount required for supply. However, it's crucial to consider that with very small amounts, the transaction costs might exceed the anticipated profits.

With the Axon app, you have the opportunity to deposit funds into the AAVE lending protocol, where you'll receive Variable interest rate.

To grasp how the Annual Percentage Yield (APY) is determined for lending in the AAVE liquidity pool, consider these essential elements:

Utilization Rate: The APY you receive in AAVE hinges on the pool's utilization rate. This rate represents the ratio of the pool's borrowed assets against the total assets available to lend. Generally, a higher utilization rate equates to a more favorable lending APY. This happens because increased borrowing drives up the returns offered to lenders, encouraging more deposits. On the flip side, higher utilization rates push up borrowing rates too, prompting borrowers to increase their collateral.

Compounding of Interest: AAVE calculates APY by compounding interest every second. This means your interest is continuously calculated and added to the principal amount, which then accrues further interest in each subsequent second, leading to potentially higher returns over time.

The accrued interest is automatically credited to the Savings wallet within the Instant wallet section.

No. All funds deposited to the Aave’s protocol can be withdrawn at any time.

To withdraw funds deposited in Aave’s lending protocol via your Axon app, please follow the steps below:

Keep in mind that if the initially deposited amount to Aave was in fiat currency, you will be able to withdraw only to your Trading wallet until any remaining clearing period ends, if such is still ongoing.