👻 Aave Internals

Aave is DeFi's largest lending protocol with $12B+ TVL. Deposit assets to earn interest from borrowers, or borrow by posting overcollateral. If your collateral drops too far, liquidators step in. Aave pioneered flash loans — uncollateralized borrows that must be repaid in a single transaction.

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Lending & Borrowing

Supply assets to earn yield, borrow against collateral with dynamic interest rates

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Liquidation Mechanics

How underwater positions get liquidated — health factors, close factors, and liquidation bonuses

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Flash Loans

Borrow any amount with zero collateral — repay in the same transaction or it reverts

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Interest Rate Model

How Aave's utilization-based rate curves work — the kink, slope1, slope2