Network
Launch Date
Consensus
Note
Sepolia
Oct 2021
PoW
Like-for-like representation of Ethereum
Görli
Jan 2019
PoA
Proof-of-Authority
Kiln
Mar 2022
PoS
Post-Merge (for ETH2), shadow fork of the mainnet
Kintsugi
Dec 2021
PoS
DEPRECATED, use Kiln; post-Merge (for ETH2)
Ropsten
Nov 2016
PoW
DEPRECATED, use Sepolia; the Merge to happen on Jun 8, 2022
Rinkeby
Apr 2017
PoA
DEPRECATED, use Görli and Görli Faucet
Kovan
Mar 2017
PoA
DEPRECATED, use Sepolia or Görli
List of active and deprecated Ethereum testnets, including Kintsugi.
Features
Optimistic rollup 
ZK-rollup 
Proof
Uses fraud proofs to prove transaction validity. 
Uses validity (zero-knowledge) proofs to prove transaction validity. 
Capital efficiency
Requires waiting through a 1-week delay (dispute period) before withdrawing funds. 
Users can withdraw funds immediately because validity proofs provide incontrovertible evidence of the authenticity of off-chain transactions. 
Data compression
Publishes full transaction data as calldata to Ethereum Mainnet, which increases rollup costs. 
Doesn't need to publish transaction data on Ethereum because ZK-SNARKs and ZK-STARKs already guarantee the accuracy of the rollup state. 
EVM compatibility
Uses a simulation of the Ethereum Virtual Machine (EVM), which allows it to run arbitrary logic and support smart contracts. 
Doesn't widely support EVM computation, although a few EVM-compatible ZK-rollups have appeared. 
Rollup costs
Reduces costs since it publishes minimal data on Ethereum and doesn't have to post proofs for transactions, except in special circumstances. 
Faces higher overhead from costs involved in generating and verifying proofs for every transaction block. ZK proofs require specialized, expensive hardware to create and have high on-chain verification costs. 
Trust assumptions
Doesn't require a trusted setup. 
Requires a trusted setup to work. 
Liveness requirements
Verifiers are needed to keep tabs on the actual rollup state and the one referenced in the state root to detect fraud. 
Users don't need someone to watch the L2 chain to detect fraud. 
Security properties 
Relies on cryptoeconomic incentives to assure users of rollup security. 
Relies on cryptographic guarantees for security. 
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curl 
https://release.solana.com/v1.10.32/solana-install-init-x86_64-pc-windows-msvc.exe 
--output 
C:\solana-install-tmp\solana-install-init.exe 
--create-dirs
DeFi
ETHEREUM LENDING PLATFORM OVERVIEW

How to Use an Ethereum Lending Platform (Aave)

Learn How to Lend ERC20 Tokens on Aave, a Decentralized Lending Platform on Ethereum
Last Updated:
December 2, 2022
Table of Contents
Table of Contents
Table of Contents

{{building-on-ethereum}}

Aave is an open-source, DeFi lending platform that allows users to lend and borrow crypto using a peer-to-pool strategy. Aave users interact with smart contracts to lend and borrow digital assets from a liquidity pool, and in return they either earn or pay interest on the loaned or borrowed assets.

Aave allows the use of different blockchain protocols called markets, which includes layer 2 blockchains. Users can lend crypto and earn profit for the duration of the loan. Currently, Aave has over $6 billion worth of assets locked in its protocol. This article demonstrates how to lend on Aave.

1. Download and Install MetaMask

  1. Go to MetaMask‍
  2. Download and install MetaMask as a browser extension(Chrome, firefox, brave, edge, and opera) for PCs
  3. Create an account
  4. Save your secret recovery phrase

Note: Never share your recovery phrase with anyone. Losing your seed phrase means losing access to all your funds.

2. Fund your MetaMask Wallet

  1. Copy your MetaMask address (click on your account address to copy it)
  2. Go to a crypto exchange (e.g. Coinbase)
  3. Buy some Ethereum or any asset you want to lend on Aave
  4. Withdraw Ethereum and any other ERC20 tokens you want to lend on Aave to your wallet address

Note: you will need some amount of ETH to pay for gas fees

3. Connect Your MetaMask Wallet to Aave

  1. Go to Aave‍
  2. Click on the launch app button to access the Aave user interface
  3. Click on the connect button to connect your wallet
  4. Select browser wallet to trigger your MetaMask wallet to open
  5. Enter your password or confirm your desire to connect to Aave

4. Choose the Token You Want to Lend or Borrow

Aave has different markets for lending and borrowing crypto. By default the Ethereum version 2 market is selected. The version 3 markets are layer 2 blockchains that provide faster and cheaper transactions. For this tutorial, we will use the Ethereum version 2 market.

  1. Click on the drop-down button
  2. Select the Ethereum version 2 market if it isn't already selected
  3. From the interface, you can see the assets you can supply as well as the ones you can borrow

Note: that the supply button only becomes active when you have the required asset to lend.

Here is what different labels on the Aave UI mean:

  • Reserve size - the total amount of assets that have been supplied to the protocol
  • Available liquidity - the amount of assets available that have not been borrowed
  • Utilization rate - the amount of assets that have been borrowed (the higher the utilization rate, the higher the APY)
  • APY - the Annual Percentage Yield of the specified asset (i.e. the profit you earn by lending your asset based on supply and demand)

5. Lend ERC20 Tokens on Aave

Now that your wallet is connected and you know which token you want to lend, it's time to submit a transaction.

  1. Select the asset you want to lend (i.e. supply)
  2. Click on the supply button.
  3. Specify the amount of asset you want to lend
  4. Approve the transaction and pay the gas fees on your MetaMask wallet

The transaction might take a few seconds to a few minutes to go through. After the transaction has been confirmed, you can see how much you’re lending on Aave.

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DeFi
ETHEREUM LENDING PLATFORM OVERVIEW

How to Use a Decentralized Lending Platform on Ethereum

Learn How to Lend ERC20 Tokens on Aave, a Decentralized Lending Platform on Ethereum
Last Updated:
December 2, 2022
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Table of Contents

Aave is an open-source, DeFi lending platform that allows users to lend and borrow crypto using a peer-to-pool strategy. Aave users interact with smart contracts to lend and borrow digital assets from a liquidity pool, and in return they either earn or pay interest on the loaned or borrowed assets.

Aave allows the use of different blockchain protocols called markets, which includes layer 2 blockchains. Users can lend crypto and earn profit for the duration of the loan. Currently, Aave has over $6 billion worth of assets locked in its protocol. This article demonstrates how to lend on Aave.

1. Download and Install MetaMask

  1. Go to MetaMask‍
  2. Download and install MetaMask as a browser extension(Chrome, firefox, brave, edge, and opera) for PCs
  3. Create an account
  4. Save your secret recovery phrase

Note: Never share your recovery phrase with anyone. Losing your seed phrase means losing access to all your funds.

2. Fund your MetaMask Wallet

  1. Copy your MetaMask address (click on your account address to copy it)
  2. Go to a crypto exchange (e.g. Coinbase)
  3. Buy some Ethereum or any asset you want to lend on Aave
  4. Withdraw Ethereum and any other ERC20 tokens you want to lend on Aave to your wallet address

Note: you will need some amount of ETH to pay for gas fees

3. Connect Your MetaMask Wallet to Aave

  1. Go to Aave‍
  2. Click on the launch app button to access the Aave user interface
  3. Click on the connect button to connect your wallet
  4. Select browser wallet to trigger your MetaMask wallet to open
  5. Enter your password or confirm your desire to connect to Aave

4. Choose the Token You Want to Lend or Borrow

Aave has different markets for lending and borrowing crypto. By default the Ethereum version 2 market is selected. The version 3 markets are layer 2 blockchains that provide faster and cheaper transactions. For this tutorial, we will use the Ethereum version 2 market.

  1. Click on the drop-down button
  2. Select the Ethereum version 2 market if it isn't already selected
  3. From the interface, you can see the assets you can supply as well as the ones you can borrow

Note: that the supply button only becomes active when you have the required asset to lend.

Here is what different labels on the Aave UI mean:

  • Reserve size - the total amount of assets that have been supplied to the protocol
  • Available liquidity - the amount of assets available that have not been borrowed
  • Utilization rate - the amount of assets that have been borrowed (the higher the utilization rate, the higher the APY)
  • APY - the Annual Percentage Yield of the specified asset (i.e. the profit you earn by lending your asset based on supply and demand)

5. Lend ERC20 Tokens on Aave

Now that your wallet is connected and you know which token you want to lend, it's time to submit a transaction.

  1. Select the asset you want to lend (i.e. supply)
  2. Click on the supply button.
  3. Specify the amount of asset you want to lend
  4. Approve the transaction and pay the gas fees on your MetaMask wallet

The transaction might take a few seconds to a few minutes to go through. After the transaction has been confirmed, you can see how much you’re lending on Aave.

Aave is an open-source, DeFi lending platform that allows users to lend and borrow crypto using a peer-to-pool strategy. Aave users interact with smart contracts to lend and borrow digital assets from a liquidity pool, and in return they either earn or pay interest on the loaned or borrowed assets.

Aave allows the use of different blockchain protocols called markets, which includes layer 2 blockchains. Users can lend crypto and earn profit for the duration of the loan. Currently, Aave has over $6 billion worth of assets locked in its protocol. This article demonstrates how to lend on Aave.

1. Download and Install MetaMask

  1. Go to MetaMask‍
  2. Download and install MetaMask as a browser extension(Chrome, firefox, brave, edge, and opera) for PCs
  3. Create an account
  4. Save your secret recovery phrase

Note: Never share your recovery phrase with anyone. Losing your seed phrase means losing access to all your funds.

2. Fund your MetaMask Wallet

  1. Copy your MetaMask address (click on your account address to copy it)
  2. Go to a crypto exchange (e.g. Coinbase)
  3. Buy some Ethereum or any asset you want to lend on Aave
  4. Withdraw Ethereum and any other ERC20 tokens you want to lend on Aave to your wallet address

Note: you will need some amount of ETH to pay for gas fees

3. Connect Your MetaMask Wallet to Aave

  1. Go to Aave‍
  2. Click on the launch app button to access the Aave user interface
  3. Click on the connect button to connect your wallet
  4. Select browser wallet to trigger your MetaMask wallet to open
  5. Enter your password or confirm your desire to connect to Aave

4. Choose the Token You Want to Lend or Borrow

Aave has different markets for lending and borrowing crypto. By default the Ethereum version 2 market is selected. The version 3 markets are layer 2 blockchains that provide faster and cheaper transactions. For this tutorial, we will use the Ethereum version 2 market.

  1. Click on the drop-down button
  2. Select the Ethereum version 2 market if it isn't already selected
  3. From the interface, you can see the assets you can supply as well as the ones you can borrow

Note: that the supply button only becomes active when you have the required asset to lend.

Here is what different labels on the Aave UI mean:

  • Reserve size - the total amount of assets that have been supplied to the protocol
  • Available liquidity - the amount of assets available that have not been borrowed
  • Utilization rate - the amount of assets that have been borrowed (the higher the utilization rate, the higher the APY)
  • APY - the Annual Percentage Yield of the specified asset (i.e. the profit you earn by lending your asset based on supply and demand)

5. Lend ERC20 Tokens on Aave

Now that your wallet is connected and you know which token you want to lend, it's time to submit a transaction.

  1. Select the asset you want to lend (i.e. supply)
  2. Click on the supply button.
  3. Specify the amount of asset you want to lend
  4. Approve the transaction and pay the gas fees on your MetaMask wallet

The transaction might take a few seconds to a few minutes to go through. After the transaction has been confirmed, you can see how much you’re lending on Aave.

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