aave-lending-guide

To borrow on Aave safely, target a Loan-to-Value ratio below the liquidation threshold. Assessing your health factor and estimating your liquidation price before opening a position ensures you maintain adequate collateral against variable or stable debt.

E-Mode on Aave allows higher LTV ratios when supplying and borrowing correlated assets. This efficiency mode maximizes capital efficiency for specific asset categories while requiring you to manage the underlying liquidation risk carefully.

Aave flash loans allow uncollateralized borrowing within a single transaction. The primary constraint is that you must repay the principal plus any fees before the transaction ends, or the entire transaction reverts and fails.

Aave borrowers incur variable debt that fluctuates with market conditions or stable debt with a fixed rate over time. Understanding how these debt tokens behave helps you choose the optimal strategy for your lending positions.

Selecting an Aave deployment requires comparing liquidity, gas costs, and incentive structures across different networks. Evaluating these factors ensures you choose the most efficient environment for your specific supply and borrow needs.