Aave v3 WETH (AWETH)

Aave v3 WETH (AWETH) is an interest-bearing aToken minted by the Aave v3 lending protocol whenever a user supplies Wrapped Ether (WETH) as a deposit. It is issued 1:1 against the deposited WETH and credited directly to the depositor’s wallet as an ERC-20 token, tracking the underlying WETH reserve on whichever network the specific Aave v3 market is deployed on (Aave v3 markets exist across Ethereum and several other EVM-compatible chains, each with its own aWETH contract).

Rather than requiring holders to claim yield separately, aWETH accrues interest automatically by increasing the token’s balance over time, funded by interest paid by borrowers in the same Aave liquidity pool. Holders redeem aWETH by withdrawing from Aave, which burns the aTokens and returns the original WETH plus any accrued interest, subject to available liquidity in the pool. Its value and backing are therefore fully dependent on Aave’s smart contracts and the WETH reserve it represents, not on independent price action.