Category: Lending & Borrowing
Recommended Capital: $200+
Earn Up To: 5% APY (AAVE)
How Does It Work?
- AAVE has a safety net fund for its users in case of bug / loss of funds.
- This fund is pooled money from stakers (us)
- Incentive to put money in this safety fund = ~5% yearly interest paid in AAVE tokens.
- Risk = In case of shortfall event, UP TO 30% of the pool funds will be used to pay back users who lost money.
How To Start Earning Interest:
1. Purchase the amount of AAVE tokens you want to stake. (Can be purchased on Coinbase)
2. Once purchased, send it to your MetaMask wallet. (Don't forget to send ETH for paying fees)
3. Go to AAVE's staking section on their website (top menu bar)
4. Make sure to select 'Stake AAVE'. (notice the current "Staking APY" you will be getting)
5. You'll see the warning about the risk of this pool, if comfortable, click accept.
6. Approve, Stake, Finished!