Aave AAVE (AAAVE)

Aave AAVE (AAAVE) is an interest-bearing “aToken” issued by the Aave lending protocol on the Ethereum blockchain, representing AAVE governance tokens supplied as a deposit into Aave’s V3 liquidity market. Known on-chain as aEthAAVE, it is minted automatically by Aave’s smart contracts whenever a user deposits AAVE into the protocol, and it sits in that user’s wallet as a live record of the deposit.

The token is pegged 1:1 to the AAVE it represents and its balance grows in place as interest accrues, with holders able to redeem it for the underlying AAVE plus any interest earned by withdrawing from the Aave protocol at any time. Because it mirrors deposited AAVE rather than trading as an independent asset, its supply and value track AAVE deposits in Aave’s Ethereum market rather than any separate token economy.