What is Aave Lending V2?

Aave is a decentralized non-custodial liquidity market protocol where you can participate as depositors or borrowers. As a depositor, you can earn a passive income by providing liquidity to the market. On the other hand, you can borrow assets from the liquidity pool as well with enough collateral from your deposited assets.

With DeFi Earn integration, we handle the deposit and withdrawal process with Aave Lending V2 natively on the DeFi Wallet app, hence you don’t have to worry about dealing with smart contract calls and we simplify the concept of aTokens and display the accrued interest you’re earning overtime -

When your tokens are deposited to the Aave Lending V2 protocol via DeFi Earn, you are transferring them to the Aave smart contract. In exchange, you get the corresponding aTokens which represent the claim to your lent assets.

When you decide to withdraw your deposited assets, extra funds earned through the aTokens will be credited to your account. For example, depositing 1 DAI will give you 1 aDAI, which will slowly grow in balance as time goes on. When you withdraw, that extra balance will be credited to you.

Read on to learn about how to deposit, view earnings, withdraw via DeFi Earn.

How do I deposit my crypto assets to DeFi Earn - Aave Lending V2?

  1. Tap [Earn] on the bottom navigation of your DeFi Wallet app

  2. Tap [Earn More] to see the list of tokens supported for earning

  3. Select your preferred token and choose the Aave protocol in the [Choose Protocol] page and enter the deposit amount to see the projected annual earning based on the latest APY%

  4. Review and confirm the deposit by tapping [Confirm Deposit]

    1. Note: Depositing crypto assets to Aave Lending V2 involves calling the ETH smart contract which requires ETH as network fees, hence the estimated network fee will be higher than normal transfers. Please ensure you have sufficient ETH in your wallet before proceeding.

  5. Authorize the deposit request with your passcode (and 2FA if enabled)

  6. Wait for the on-chain confirmation of your deposit request

  7. Once confirmed, you will see the refreshed total assets amount on your DeFi Earn screen

On the DeFi Earn home screen, you will also be able to see the estimated APY % by tokens. The tokens you deposit into DeFi Earn will be linked to one protocol for earning interest at the time of deposit. Your deposited asset will start accruing interest once the deposit is confirmed on-chain.

How do I view my earnings or deposited assets via DeFi Earn - Aave Lending V2?

Simply navigate to the DeFi Earn, by default we will show your total DeFi Earn assets in fiat equivalence in “Total Fiat Amount”

  • Tap on “Total Fiat Amount” to switch to “Total Crypto Amount” and view your DeFi Earn assets in crypto amount

  • Tap on “Total Crypto Amount” to switch to “Earnings” and view your estimated earnings

For a more granular breakdown, you can tap onto a specific token and you will be able to see the latest APY %, total asset amount, and estimated earnings in crypto amount.

How do I withdraw my crypto assets from DeFi Earn - Aave Lending V2?

There is no lockup period for the deposit and you can withdraw your crypto assets from DeFi Earn at any time. Here are the steps to withdraw your crypto assets from DeFi Earn:

  1. Withdrawal via DeFi Earn tab

    1. From home screen, navigate to the DeFi Earn tab at the bottom

    2. On DeFi Earn screen, select the token you would like to withdraw from the “Assets” section

    3. Tap onto the “Withdraw” button on the DeFi Earn Details screen

  2. Withdrawal via wallet balance

    1. From home screen, tap onto “DeFi Earn Assets”

    2. Select the token on the assets screen

    3. You will arrive at your wallet balance screen, tap “View Earnings”

    4. Tap onto the “Withdraw” button on the DeFi Earn Details screen

After confirming the withdrawal, you’ll see the pending status on both your home screen and the DeFi Earn screen.

Does Crypto.com charge a fee to deposit/withdraw to/from Aave Lending V2?

Crypto.com charges a 0.5% service fee on the corresponding earnings for each withdrawal from Aave Lending V2. The fee is used to supplement the operational costs and risks associated with managing DeFi services, and bringing more DeFi projects to you.

Please note that Aave Lending V2 is an Ethereum-based protocol and each deposit or withdrawal request incurs a network fee in ETH.

Hence, we advise you to only withdraw your underlying assets + interest when you have earned enough to cover the network fee.

How can I opt-out my deposited assets as collateral on Aave?

By default, all deposited assets to Aave Lending V2 on the Crypto.com DeFi Wallet will have opted in as collateral. We currently do not support opting out your deposits as collateral on Aave. In order to opt-out your deposits as collateral on Aave, please go to the Aave Web DApp.

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