# Aave

> Decentralised non-custodial liquidity protocol for supplying, borrowing, and earning yield on crypto assets, with programmable money-market primitives.

- Readiness score: **84/100** (score.v2)
- Integration difficulty: medium
- Chains: ethereum, arbitrum-one, optimism, base, polygon, avalanche
- Categories: defi, lending, money-market, liquidity, ethereum
- Last verified: 2026-06-16 by composewith.eth research (aave.com, aave.com/docs, and aave-dao/aave-v3-origin live-verified via WebFetch 2026-06-16) (confidence: high)

## Resources

- docs: https://aave.com/docs
- sdk: https://github.com/aave-dao/aave-v3-origin

## Good for

- onchain lending and borrowing
- earning yield on idle treasury or app assets
- using supplied assets as collateral
- leveraged and looping strategies

## Avoid for

- fixed-rate or fixed-term loans without extra tooling
- undercollateralised or unsecured lending
- low-liquidity long-tail assets not listed on the protocol

## Capabilities

### Supply & borrow money market (production-ready)
Best for: supplying assets to earn yield, overcollateralised borrowing, treasury yield on idle stablecoins
- Per-asset supply/borrow caps and isolation mode can limit borrowing against newly listed assets.

### Collateralised positions & liquidations (production-ready)
Best for: using deposits as collateral, health-factor-managed leverage
- Positions are liquidatable when the health factor drops; oracle and liquidity assumptions must be checked per market.

## Composes with

- **chainlink** (oracle_and_price_data; uses) — Aave markets rely on price oracles (Chainlink feeds) to value collateral and trigger liquidations.
- **pyth** (oracle_and_price_data; alternative) — Pyth pull-based price feeds are an alternative price source for money-market deployments.
- **uniswap** (supporting_protocol; supports) — Uniswap is the liquidity venue for swapping collateral and executing liquidations around Aave positions.
- **safe** (operational_controls; supports) — A Safe multisig can hold and manage Aave supply/borrow positions under treasury policy controls.

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Canonical: https://composewith.eth/protocols/aave · JSON: https://composewith.eth/protocols/aave.json