TL;DR: Aave is the original DeFi lending protocol — you deposit crypto to earn yield, or borrow against your collateral, without an intermediary. This guide walks through the five steps to make your first supply on Aave: pick a network, connect a wallet, deposit an asset, optionally borrow, then repay and withdraw.
Last updated: May 2026
Aave is one of the most popular DeFi lending protocols. It lets you earn yield by supplying assets, and borrow against collateral — without creating an account.
Only use the official Aave site, start with a small test amount, and never borrow so close to liquidation that normal market moves can wipe you out.
What you’ll need
- An EVM wallet like Rabby.
- Some gas on the network you’ll use (ETH for Ethereum/L2s, MATIC for Polygon, etc.).
- The asset you want to supply (common beginner picks are stablecoins like USDC).
Step 1: Choose a network (pick the simplest)
Aave runs on multiple networks. For beginners, an L2 often has lower fees than Ethereum mainnet.
Arbitrum or Optimism for lower fees.
Ethereum mainnet if you don’t mind higher gas.
Step 2: Connect your wallet
- Go to the official Aave app.
- Click Connect.
- Select your wallet and approve the connection.
- Confirm the network in your wallet matches what you chose.
Step 3: Supply (lend) an asset
- Find the asset you want to supply (for example: USDC).
- Click Supply.
- Enter a small test amount first.
- Approve the token (first time only), then confirm the supply transaction.
Step 4 (Optional): Borrow against your collateral
Borrowing is where the real risk starts. If your collateral value drops, you can be liquidated.
Your Health Factor is your safety buffer. If it drops too low, you can be liquidated. Borrow conservatively and leave plenty of room.
- On your supplied asset, enable Use as collateral (if prompted).
- Choose the asset you want to borrow.
- Select Variable or Stable rate (when available).
- Borrow a small amount first and confirm the transaction.
Step 5: Repay and withdraw
- To repay: go to your borrowed asset → Repay → confirm.
- To withdraw: go to your supplied asset → Withdraw → confirm.
Beginner tips
- Keep borrowing low so your Health Factor stays comfortably safe.
- Don’t supply/borrow your entire wallet — keep extra gas for transactions.
- Prefer stablecoins for your first supply to reduce volatility risk.
Frequently asked questions
Is Aave safe to use?
Aave has been live since 2017, audited multiple times by leading firms, and currently holds billions in TVL across networks. The smart contracts themselves are battle-tested. Most user losses on Aave come from liquidations (borrowing too aggressively against volatile collateral) — not protocol failure. Stick to low loan-to-value ratios and stablecoin borrows while you learn.
How much can I earn supplying to Aave?
Supply APY varies by asset and network. Stablecoins (USDC, USDT, DAI) typically yield 2-8% APY depending on borrow demand. Volatile assets like ETH yield less (often 1-3%). Aave’s interface shows the live rate next to every asset.
Which network should a beginner use for Aave?
Start on Polygon, Base, or Arbitrum. Gas is cents, the same Aave interface works identically, and a $50 mistake on a cheap chain teaches the same lesson as a $50 mistake on Ethereum mainnet (which would also cost $30+ in gas).
Can I lose money supplying to Aave?
The supplied asset itself can lose value (depositing ETH and ETH drops 30% — your USD value drops 30%). The amount of ETH stays the same and earns yield. Smart contract risk is real but historically very small for Aave specifically. Borrowing can lead to liquidation if collateral value drops sharply.
What is the difference between Aave and a centralized exchange like Coinbase?
Coinbase holds your assets; you trust the company. Aave is a smart contract; you keep self-custody and interact with the protocol via your own wallet. No KYC, no withdrawal limits, but no support line if you mess up either.
How are Aave fees calculated?
Aave charges no platform fees on supply or borrow. You pay interest on borrows (set algorithmically based on utilization) and network gas on every transaction. The interface always shows the gas estimate before you sign.