Five proven ways to generate yield on Aave — from simple stablecoin deposits to advanced leveraged strategies.
Aave offers multiple yield generation paths for different risk appetites. The simplest — supply stablecoins and earn interest — is accessible to anyone. The most complex — leveraged yield loops and GHO-based strategies — can amplify returns but require deep understanding of the risks involved.
The most battle-tested DeFi lending protocol — supply, borrow, flash loans, GHO, and now 100% fee sharing for AAVE stakers.
Step-by-step from wallet connection to earning yield and staking AAVE.
Supply USDC or USDT on Arbitrum. Check the current APY on app.aave.com. This is the foundation.
If you hold AAVE, stake in the Safety Module. The 100% fee redirect since April 2026 makes this the best risk-adjusted use for AAVE tokens.
If you have Aave collateral, mint GHO at the AAVE holder discount rate and deploy it in Curve, Balancer, or elsewhere for additional yield.
Leverage loops amplify both gains and liquidation risk. Only consider if you have months of experience managing Aave positions.
Advanced users: supply ETH as collateral, borrow USDC, deploy USDC on Aave supply for the spread, stake earned AAVE. Multiple yield layers on one capital base.
Join $14.5B in TVL across 12+ networks. Supply assets to earn yield or stake AAVE for 100% of protocol fees.
Open Aave App →Everything about How to Earn on Aave.
"The five-strategy framework is exactly how I think about Aave positions. Start with simple supply, add AAVE staking, then consider GHO strategies. Build complexity gradually."
"Leverage loops are powerful but genuinely dangerous in volatile markets. The guide correctly saves them for last and adds sufficient risk warnings."
"Strategy 1 (supply stablecoins) alone has been more than enough for me. 5-6% on USDC consistently, no active management, no liquidation risk. Aave\'s simplest use case is still excellent."
Aave v4 is live — supply, borrow, mint GHO, and stake AAVE for 100% of protocol fees.
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