What are aTokens?
aTokens, or Aave tokens, are the tokens issued by the Aave protocol when you lend tokens to an Aave lending pool. aTokens, such as aUSDC or aDAI, represent the amount of tokens you have loaned.
Each aToken represents a loaned token at a 1:1 ratio, and allows you to withdraw your loaned tokens at a 1:1 ratio. For example, if you lend 500 DAI, you’ll receive 500 aDAI to hold until you’re ready to withdraw. When you withdraw, you’ll enter the amount of aDAI you want to “burn”, or return, such as 450 aDAI, and then you’ll receive 450 DAI in the same account.
As your loaned tokens earn rewards, the amount of aTokens in your account will automatically increase to reflect the rewards earned.
You can trade aTokens, but doing so affects the amount of rewards you earn and how many loaned tokens you can withdraw.
Let’s say you loan 100 USDC into the Aave protocol and automatically receive 100 aUSDC in return. Over time, your loaned USDC earns compounded rewards, resulting in your aUSDC increasing to 115.
You decide to spend some aUSDC on a coffee using MetaMask Card, leaving you with 110 aUSDC. 110 aUSDC is the new amount that will earn compounded rewards.
You then decide you’re ready to withdraw your loaned USDC. You return your 110 aUSDC to the protocol, and receive 110 USDC in return.
Get aUSDC on Linea
With MetaMask Card, you can now spend aUSDC IRL. To do so, you’ll need aUSDC on Linea. You can’t bridge aUSDC (see our FAQ below to learn why); instead, you need to lend USDC on Linea to receive aUSDC on the correct network for spending.
First, make sure you have USDC on Linea in your MetaMask account. You can bridge USDC to Linea, or on-ramp some. Then, click on the USDC on Linea to expand the token details. Click ‘Earn’, and go through the rest of the flow as normal. The aUSDC you receive will be on Linea, and you can then approve it for spending with your MetaMask Card.
This is not financial advice. Users should do their own research before engaging in DeFi activities and protocols.
FAQs
Can I spend aTokens with MetaMask Card?
Yes! You can spend aUSDC on MetaMask Card.
Can I bridge my aTokens?
No, you can’t bridge your aTokens to another network. When you receive an aToken, you are receiving an aToken specific to the network you are on. For example, if you lend USDC on Linea, you will receive aLINUSDC, and if you lend USDC on Ethereum, you will receive aETHUSDC. Both tokens are USDC, but they are both instances of USDC on a specific network.
Can I send my aTokens to another account, and will they continue to earn rewards?
Yes! You can send your aTokens to another account on the same network. Because aTokens represent loaned tokens, they will continue to earn rewards.
What kind of trading can I do with my aTokens?
- Trading with aTokens varies based on the application and protocol.
- We recommend doing your own research before participating in DeFi activities with aTokens. The longer you hold your aTokens, the more rewards you can earn.
Can any account redeem aUSDC for USDC, or does it have to be the one that originally loaned to Aave?
Any account can redeem aUSDC for USDC, as long as the aUSDC is on the original network that the USDC was loaned on.