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How to use Aave V2 with Argent

You can now earn interest with Aave V2 in a tap from Argent.

Matthew Wright
Dec 3, 2020

We're thrilled to announce our integration of Aave V2, the newest version of the Aave protocol, which has just gone live.

Argent is the easiest way to earn interest with Aave V2.

The launch comes after a period of explosive growth for Aave, with their market cap surpassing $1bn. As V2 offers several important improvements, the future of decentralized finance is looking brighter than ever.

Here's a quick overview of Aave V2 and how to use it from Argent - just download to start.

What is Aave V2?

Aave is a DeFi marketplace matching crypto borrowers with lenders looking to earn interest on their cryptoassets. V2 incorporates extensive feedback from the community and makes participation even more simple and robust.

Argent's native integration allows you to earn interest in a tap. We do not enable borrowing natively at the moment but you can do so by connecting your Argent wallet via WalletConnect.

One major upgrade for Aave V2 compared to V1 is their gas optimization. V2 lowers the cost of network fees (gas) for some interactions by up to 50%.

Stani from Aave said: "Every time Tesla launches a new car, the batteries are better. Every time we launch a new protocol, it’s more efficient".

On the borrower side, improvements include:

  • Debt tokenisation, where borrowers receive tokens that represent their debt.
  • Native credit delegation (allowing someone to borrow using the collateral you put down in return for you getting more more yield).
  • Ability to trade your collateral. This can reduce the risk of liquidation. If your collateral loses value you can trade it for a stablecoin.
  • Ability to repay with collateral.

Last, V2 will see the community increasingly taking over Aave's governance. Their 'Aavenomics' proposals look to align the various participants in the community through financial incentives and governance mechanisms.

How to use Aave V2 in Argent?

It's as easy as:

  1. Open the 'Invest' tab in Argent
  2. Tap Aave V2
  3. Select the asset you want to earn interest on, and the amount
  4. Confirm

Download to start.

Risks

You use Aave at your own risk. Risks include, but are not limited to, smart contract vulnerabilities and the correct functioning of the protocol's economics. Aave V2 has been audited by MixBytes; CertiK; ConsenSys Diligence; and PeckShield, the first audit in Chinese. Aave is also working with Gauntlet to test its financial infrastructure.

FAQ

Migrating LEND to AAVE

If you hold Aave's original token, LEND, and want to migrate it to their newer one, AAVE, please go to https://app.aave.com/ and connect via WalletConnect. For more information, see Aave's guide.

Migrating liquidity to V2

Aave say they will introduce a tool to migrate liquidity to V2 and there's no need to close V1 positions.

Interest calculations

As soon as you deposit you will start earning interest. This interest compounds every Ethereum block (roughly every 10 seconds). The rates fluctuate depending on demand for assets from borrowers.

Additional resources

  1. Aave V2 blog post
  2. Aave V2 Whitepaper
  3. Audits
  4. Aave's governance forum

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