Aave V3 Yield Farming
Supply tokens into Aave V3 lending pools to earn yield, withdraw at any time, and view positions across multiple chains.
Supported Networks: Ethereum, Arbitrum, Base, Optimism, Polygon, Avalanche.
IMPORTANT: All tools require a chain parameter. Always ask the user which network they want to use before proceeding. Do not assume a default chain.
Prerequisites — Wallet Policy
Before executing supply or withdraw transactions, the wallet policy must be active. Load the wallet-policy skill and propose the standard wildcard policy (deny key export + allow *). This covers all Aave operations — token approvals, supply, and withdraw — across all chains.
Available Tools (3)
| Tool | Type | Description |
|---|---|---|
aave_supply | Write | Approve + supply tokens to Aave V3 pool. Earns yield immediately. |
aave_withdraw | Write | Withdraw tokens from Aave V3 pool (includes earned interest). |
aave_positions | Read-only | View account data: collateral, debt, health factor, LTV. |
Supported Tokens by Chain
| Chain | USDC | USDT | DAI | WETH | WBTC |
|---|---|---|---|---|---|
| Ethereum | yes | yes | yes | yes | yes |
| Arbitrum | yes | yes | yes | yes | yes |
| Polygon | yes | yes | yes | yes | yes |
| Optimism | yes | yes | yes | yes | yes |
| Avalanche | yes | yes | yes | yes | yes |
| Base | yes | — | yes | yes | — |
Decision Tree
User wants to earn yield on tokens?
→ Use aave_supply
User wants to check current positions?
→ Use aave_positions
User wants to withdraw (partial or full)?
→ Use aave_withdraw (set max=true for full withdrawal)
Tool Usage Examples
Supply 100 USDC on Arbitrum
aave_supply(chain="arbitrum", token="USDC", amount="100")
Withdraw 50 USDC from Arbitrum
aave_withdraw(chain="arbitrum", token="USDC", amount="50")
Withdraw all WETH from Ethereum
aave_withdraw(chain="ethereum", token="WETH", max=true)
Check positions on Arbitrum
aave_positions(chain="arbitrum")
Common Workflows
Step 0 for all workflows: If the wallet policy is not yet active, load the wallet-policy skill and propose the standard wildcard policy before proceeding.
Earn yield on stablecoins
- Check balance:
wallet_balanceto verify token holdings - Supply:
aave_supply(chain="arbitrum", token="USDC", amount="100") - Verify:
aave_positions(chain="arbitrum")— should show collateral
Check and withdraw
- View positions:
aave_positions(chain="arbitrum") - Withdraw partial:
aave_withdraw(chain="arbitrum", token="USDC", amount="50") - Or withdraw all:
aave_withdraw(chain="arbitrum", token="USDC", max=true)
Amount Formatting
Amounts are in human-readable units (not wei):
"100"= 100 USDC"0.5"= 0.5 WETH"1.5"= 1.5 WBTC
The tool handles decimal conversion internally based on the token's decimals.
Error Handling
| Error | Cause | Solution |
|---|---|---|
Unknown chain | Invalid chain name | Use: ethereum, arbitrum, base, optimism, polygon, avalanche |
Unknown token | Token not available on that chain | Check supported tokens table above |
Insufficient balance | Not enough tokens in wallet | Check balance with wallet_balance first |
Amount must be positive | Zero or negative amount | Use a positive number |
Policy violation | Wallet policy blocks the transaction | Load wallet-policy skill and propose wildcard policy |
Not running on a Fly Machine | Local dev environment | Supply/withdraw require deployed environment with wallet |
Positions Output Explained
aave_positions returns:
- total_collateral_usd — Total value of supplied assets (USD)
- total_debt_usd — Total borrowed amount (USD). Will be 0 if you only supply.
- available_borrows_usd — How much more you could borrow (USD)
- health_factor — Ratio of collateral to debt. Higher = safer. "infinite" if no debt.
- ltv — Loan-to-value ratio (percentage)
- current_liquidation_threshold — Collateral ratio at which liquidation occurs (percentage)