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Benefit from Aave’s DeFi opportunities, using Kiln’s infrastructure
Aave
What is Aave?
Aave is a Decentralized Finance (DeFi) protocol that allows users to lend and borrow digital assets in a trustless manner. By depositing assets into liquidity pools, users can earn rewards, which are determined automatically by the Aave protocol based on supply and demand. Aave supports a wide range of cryptocurrencies, including several popular stablecoins like USDT, USDC, and DAI, making it a go-to platform for those interested in earning rewards.
Stablecoins on Aave provide attractive opportunities for risk-averse users to earn rewards. Users can deposit stablecoins for reward rates that are competitive with traditional savings accounts, but with the added benefit of being on a decentralized platform. Additionally, Aave offers unique features like the ability to switch between stable and variable reward rates and the use of stablecoins or other cryptocurrencies as collateral for borrowing other assets.
Why bring DeFi to your users?
After staking, DeFi is the next source of digital asset rewards. While stablecoins make up over 70% of on-chain volume, less than 5% of them earn rewards for the holder. In comparison, over 50% of PoS and dPoS assets are staked.
Kiln DeFi is the tech stack that enables integrators to seamlessly support and monetize DeFi in any Web3 product.
DeFi is the next step in your crypto earn offering after supporting staking. Diversify your rewards opportunities and benefit from service fees on your users’ stablecoin rewards.
Kiln DeFi is:
- 1100% on-chain
- 2Seamless
- 3Control your own pricing model
How can you offer Aave rewards with Kiln DeFi?
💡 You can start monetize Aave’s opportunities in less than a week with Kiln DeFi.
- Deploy your custom Kiln DeFi vaults
- Integrate in your UI in less than a week (see docs)
- Your users start earning supply rewards
Reach out to us if you need help to integrate Kiln DeFi.
What are the rewards associated with DeFi?
In the context of Decentralized Finance (DeFi), “rewards” refers to the earnings that a user receives from supplying or lending their assets a DeFi protocol such as Aave. DeFi platforms facilitate peer-to-peer lending and borrowing through smart contracts on blockchains like Ethereum.
In DeFi protocols like Aave, supply rates fluctuate mainly based on borrowing utilization. Higher borrowing demand increases supplier reward rates. Additional incentives and market volatility also impact these rates. Economic conditions, such as bull or bear markets, influence activity levels, with higher activity boosting yields and lower activity reducing them.
From 2.5% APY in a bear market to 22%+ during peak market activity, DeFi rewards like Aave’s can drive a significant additional source of rewards for integrators.
Why should you use Kiln DeFi to offer Aave rewards?
Kiln is the leading enterprise-grade staking platform, enabling institutional customers to earn rewards on their digital assets or integrate our tech stack into their products. The API-first platform supports fully automated rewards, data, and commission management.
With Kiln DeFi, our clients seamlessly access a wide range of protocols like Aave and assets without having to build commercial agreements and integrating different deposit/withdraw flows for each DeFi protocol.
Gain control with comprehensive reporting and monitoring of your Aave DeFi positions, rewards, and audited smart contracts.
Protocol card
Supported assets
USDT, USDC, USDe, PYUSD, LUSD,sUSDe, crvUSD
Supported EVMs
Ethereum, Base, Arbitrum, Avalanche, Fantom, Harmony, Optimism, Polygon, Metis, Gnosis, BNB Chain, Scroll
APR
2.5% to 22%
TVL
$20B+
Aave FAQ
What is Aave?
Aave is a Decentralized Finance (DeFi) protocol that allows users to lend and borrow digital assets in a trustless manner. By depositing assets into liquidity pools, users can earn rewards, which are determined automatically by the Aave protocol based on supply and demand.
What stablecoins or tokens are supported on Aave with Kiln DeFi?
Kiln DeFi supports all stablecoin assets available through Aave v3, including USDT, USDC, USDe, PYUSD, LUSD and WETH.
While all ERC-20 tokens on these platforms are integrated, native tokens like ETH are not supported. For more information, please visit the page below or contact us with any questions.
What are the rewards associated with Aave and Kiln DeFi?
Rewards are based on the supply and borrowing demand for each asset. As the borrowing demand for an asset increases, the reward rate also increases.
Check on Aave for the latest rates.
Is there a minimum amount of assets to lend on Aave?
You can supply any amount you wish, with no minimum or maximum limits. However, it's important to note that for very low amounts, the transaction costs may exceed the expected earnings.
Do the end users of the integrator maintain custody of their assets when lending on Aave?
No, lending on Aave means you will deposit your assets into their lending protocol (a smart contract) but only you have the right to withdraw your assets.
Is there a lockup period when lending assets on Aave?
No, you can withdraw your assets at any time, provided the lending pool has sufficient liquidity (i.e., it is not fully borrowed). If the pool lacks liquidity, you may need to wait for borrowers to repay their loans to free up funds.
It is a rare occurrence for a lending pool to lack liquidity, as in the event of limited liquidity borrowing rates are automatically adjusted upwards to encourage loans to be repaid.
How do I get started with Kiln DeFi?
Contact your account manager or complete our form to begin the Kiln onboarding process and access our suite of solutions.