Yeti Finance integrates with Aave V3 to offer borrowing against aTokens

Yeti Finance
2 min readApr 29, 2022

Yeti Finance is thrilled to announce that our integration with Aave V3 is live.

Aave is a decentralized lending protocol where users can participate as depositors or borrowers. Depositors provide liquidity to the market to earn a passive income, while borrowers are able to borrow in an overcollateralized (perpetually) or undercollateralized (one-block liquidity) fashion.

Aave v3 has over $1.5B in assets deposited on Avalanche that can now be collateralized on the Yeti Finance platform.

With this integration, Aave users will be able to use their deposited assets on Aave in the form of “aTOKEN” collateral and borrow against them on Yeti Finance.

What will be available on the Yeti Finance platform?

Users will also be able to deposit the following Tokens once they have been supplied/deposited on the Aave:

  • aWAVAX
  • aWETH
  • aUSDC
  • aUSDT
  • aDAI

The aToken is a representation of an asset that is deposited into the Aave protocol. A aToken is given to the depositor in exchange for supplying the corresponding asset to Aave and functions to accrue value relative to the original asset through the token’s interest rate.

When a user deposit any of the above listed Aave assets into Yeti Finance, they continue to earn the AVAX and supplier rewards that these aTokens accrue.

Aave users can borrow against their deposited aTokens on Yeti Finance to receive YUSD which they can use to swap for additional aTokens or other assets.

Re-depositing aTokens obtained with YUSD in Yeti Finance allows users to further borrow against newly acquired aTokens.

Why use the Yeti Protocol?

The architecture behind the protocol is a ‘quantum leap’ forward for the crypto borrowing landscape. The protocol enables greater capital efficiency for users, allowing them to unlock the following benefits:

  • Minimum Collateral Ratios of 105% — resulting in higher loan to value ratios and higher liquidation thresholds resulting in more efficient usage of deposited assets.
  • Rewards from youraTokens will be automatically compounded and accumulate in your trove when deposited on Yeti Finance
  • Directly redeemable — YUSD (Yeti Stablecoin) can be redeemed at face value of 1 YUSD for $1 in underlying collateral at any time minus redemption fees
  • Portfolio Borrowing — Borrow against your entire portfolio on the protocol, rather than borrowing against individual assets that you deposit to minimize risk of liquidation

About Yeti Finance

Yeti Finance is a next-gen borrowing protocol built on Avalanche. This innovative protocol enables users to borrow against their entire portfolio of crypto assets, while continuing to receive the rewards that the assets they have deposited earn.

Unlock deep liquidity, borrow at the lowest collateral ratios, and borrow against your entire portfolio to gain better protection against liquidations.

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