# How to Supply and Borrow on Aave (2026)

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**Publisher:** Decentralized Finance Publication
**Difficulty:** Beginner · **Read time:** 10 min read

## Summary

To use Aave: visit app.aave.com, connect wallet, select a network (Ethereum, Arbitrum, Base, etc.), supply an asset to earn yield (receive aTokens), enable it as collateral if borrowing, then borrow another asset. Keep health factor above 1.0 to avoid liquidation.

## Core concepts

Supplying earns variable APY paid in aTokens (balance grows automatically). Borrowing requires overcollateralisation — deposit worth more than you borrow. Health factor below 1.0 triggers liquidation.

## Step-by-step

### Step 1: Supply assets

Choose Supply tab, select asset (USDC, ETH, etc.), enter amount, confirm. You receive aTokens representing deposit plus interest.

### Step 2: Borrow (optional)

Enable supplied asset as collateral. Go to Borrow tab, select asset and amount. Monitor health factor on the dashboard.

### Step 3: Repay and withdraw

Repay borrowed assets plus accrued interest. Withdraw supplied assets once borrows are repaid or collateral allows.
## FAQ

**Q: What are aTokens?**

aTokens represent your Aave deposit — your balance increases as interest accrues without claiming.

**Q: What is eMode?**

eMode raises borrowing power for correlated assets (e.g. stETH/ETH) when enabled.

**Q: Aave vs Compound?**

Both are lending protocols. Aave offers more chains, eMode, and GHO. See our Aave vs Compound comparison.

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