You can invest USDC or DAI in Aave pools in Argent zkSync wallet.
What is Aave?
Aave is a Decentralized Finance (DeFi) marketplace with over $20bn in total value locked that lets people lend and borrow crypto assets, without needing to use a centralized intermediary like a bank or exchange. Aave is open-source and non-custodial.
Lenders earn interest by depositing assets with Aave's pools. The interest is variable - meaning it can go up or down - and paid by borrowers.
Argent's Aave integration on zkSync allows you to earn interest by depositing assets, not borrowing.
How to lend crypto in Argent zkSync with Aave
- Open your Argent zkSync wallet and go to Invest tab
- Tap USDC or DAI you want to invest > Lend
- Enter the amount of asset you would like to invest
- Tap Review
- Tap Invest now
Once the transaction has been completed you’ll receive either aUSDC or aDAI based on the token you selected, representing the amount you have invested.
Since zkSync doesn't have smart contracts yet, the rewards will not show token amount increase. You will see the fiat price of the token change instead.
Aave charges no fees to lenders.
As we are using pooling to bring liquidity from L1 to L2, you pay a small gas fee to cover your share of the L1 transaction needed to rebalance the pool.
There are also zkSync network fees which will cost no more than a couple of dollars.
As always in crypto and DeFi, you should do your own research on the risks. These include smart contracts and the economics of the protocols. Aave’s audits can be found here.
As soon as you deposit you will start earning interest. This interest compounds every Ethereum block - about 10 seconds. The interest rate is variable, meaning that it will fluctuate based on borrowers’ demand for the crypto assets. If there is a high demand, then the rate goes up, and if there is low demand, it declines. Read more about this in Aave’s docs.
How Aave access works via Argent on zkSync
ZkSync is just getting started and smart contracts are coming with version 2.0 in 2022 - until then, we’ve partnered with leading DeFi providers to bring a selection of popular investment options and utilize atomic swaps on zkSync - a trustless, peer-to-peer way to swap tokens between two parties.