Aave Interest Rates Explained

Learn how Aave interest rates work, calculate APYs, and access historical data CSVs with Aavescan.

Download Historical Rates CSV (4+ years)

What is Aave?

Aave is a decentralized lending and borrowing platform enabling users to earn interest on deposits or borrow crypto assets using collateral.

Types of Aave Interest Rates

  • Deposit (Liquidity Rate): Yield earned by depositors.
  • Borrow Rate: Interest borrowers pay.

How Aave Rates Are Calculated

Aave rates are dynamic, influenced primarily by:

  • Utilization Rate: Current liquidity usage.
  • Base Rate & Slope: Set per asset, adjusting rates as borrowing fluctuates.

How to Calculate APY from APR

Aave reserve contracts report deposit and borrow rates as APRs. Convert APR to APY:

rateApr = rate / 10^27
rateApy = ((1 + (rateApr / 365)) ^ 365) - 1

Learn more about APY calculations

Aave Key Terms Explained

  • Liquidity Rate: Annualized depositor yield (APR).
  • Liquidity Index: Total depositor yield including extra fees since the inception of the market. Use this to compare historical interest between two timestamps.
  • Variable Borrow Rate: APR charged to borrowers.
  • Variable Borrow Index: Total borrow interest accumulated since the inception of the market. Use this to compare historical interest between two timestamps.
  • Utilization Rate: Percentage of liquidity currently borrowed.
  • Total AToken: Total deposited amount.
  • Variable Borrow Debt: Total borrowed amount at variable rates.

Why Use Aavescan?

Aavescan offers tools to:

  • Access real-time deposit and borrow rates.
  • Download historical data in CSV format.
  • Easily compare rates across Aave versions.

Practical Uses of Aavescan Data

  • Optimizing deposit strategies through historical APY analysis.
  • Identifying optimal borrowing periods.
  • Downloading CSV data for DeFi research and reporting.

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Disclaimer: Information provided is educational and not financial advice. Always conduct your own research before using DeFi platforms.