> For the complete documentation index, see [llms.txt](https://docs.arenas.fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.arenas.fi/arenas/aave-market.md).

# Aave Market

The app includes an **Aave market** where you can supply supported **Aave tokens** as collateral. That collateral does more than earn Aave's base supply yield — its **borrowing power** used to fund Atomica financing pools and earn **bonus APY/APR** on top.

***

### The idea: boosted yield via credit delegation

Instead of supplying idle capital, you put your Aave collateral's **borrowing power** to work:

1. **Supply** a supported asset into the Aave market (visible in the app) — this is your collateral and earns Aave's base supply yield.
2. **Borrow against it on Aave** through **credit delegation** — your collateral's borrowing power is delegated so funds can be borrowed from Aave without withdrawing your deposit.
3. **Supply the borrowed liquidity into Atomica** financing pools.
4. **Earn the spread.** Atomica's supply yield is higher than the Aave borrow rate, so the difference is **bonus APY/APR** — earned on top of the base Aave supply yield you keep on your original collateral.

In short: **borrow from Aave, supply to Atomica.** You keep your Aave position and amplify your overall yield with the delegated credit.

> Like any leveraged position, this carries risk. The borrowed amount accrues Aave interest, your Aave collateral remains subject to Aave's health-factor and liquidation rules, and Atomica financing carries credit risk (see [Atomica Risks](/atomica/atomica-risks.md)). The bonus only holds while Atomica yield exceeds the Aave borrow cost.

***

### How delegation works

Credit delegation lets a supplier (the **delegator**) keep their collateral supplied while delegating borrowing power so liquidity can be borrowed and routed into Atomica. Mechanically it follows Aave's standard flow — `approveDelegation` on the relevant debt token, then a delegated `borrow`. See [Credit Delegation](/arenas/credit-delegation.md) for the full mechanics.

***

### Relationship to Aave

Arenas is **not partnered with, affiliated with, or endorsed by Aave**. Aave v3 is a permissionless **public good**, and Arenas simply uses the **publicly available liquidity** and the standard credit-delegation interface that anyone can access. Aave is **not** the underlying engine of Arenas — Arenas’ only contract is the [Credit Delegation Module (CDM)](/arenas/credit-delegation.md), and credit itself runs on the external [Atomica](/atomica/atomica-protocol.md) engine. Aave is one optional, external liquidity source.

***

### Aave v3 contract addresses (Base)

The canonical Aave v3 deployment on **Base** (chain id `8453`). These are **Aave's own public contracts**, not Arenas contracts — always cross-check against the official [Aave Address Book](https://github.com/bgd-labs/aave-address-book) before interacting.

| Name                      | Address                                      |
| ------------------------- | -------------------------------------------- |
| PoolAddressesProvider     | `0xe20fCBdBfFC4Dd138cE8b2E6FBb6CB49777ad64D` |
| Pool                      | `0xA238Dd80C259a72e81d7e4664a9801593F98d1c5` |
| PoolConfigurator          | `0x5731a04B1E775f0fdd454Bf70f3335886e9A96be` |
| AaveOracle                | `0x2Cc0Fc26eD4563A5ce5e8bdcfe1A2878676Ae156` |
| AaveProtocolDataProvider  | `0x0F43731EB8d45A581f4a36DD74F5f358bc90C73A` |
| UiPoolDataProviderV3      | `0x0C6BC4a12039788be08F87e87Cff87FEDbd1D386` |
| UiIncentiveDataProviderV3 | `0x91E04cf78e53aEBe609e8a7f2003e7EECD743F2B` |
| ACLManager                | `0x43955b0899Ab7232E3a454cf84AedD22Ad46FD33` |
| WrappedTokenGatewayV3     | `0xa0d9C1E9E48Ca30c8d8C3B5D69FF5dc1f6DFfC24` |
| RewardsController         | `0xf9cc4F0D883F1a1eb2c253bdb46c254Ca51E1F44` |
| Collector                 | `0xBA9424d650A4F5c80a0dA641254d1AcCE2A37057` |

> These are external, third-party addresses maintained by Aave. Arenas itself deploys only the [Credit Delegation Module (CDM)](/arenas/credit-delegation.md); the credit markets are [Atomica](/atomica/atomica-protocol.md) contracts.
