Aave is a decentralized lending protocol, founded in 2017, where users supply crypto to shared pools and borrow other assets against it. On Aave V3 on Base, borrowers lock Coinbase Wrapped BTC (cbBTC) and borrow USD Coin (USDC) straight to a self-custody wallet, with no credit application and no fixed repayment date.
The USDC rate is variable and moves with pool demand. cbBTC has an 81% maximum loan-to-value ratio and an 84% liquidation threshold, and a position can be liquidated once its health factor falls below 1. Aave governance and designated risk managers set these parameters and can change them.
Supplied cbBTC sits in pooled smart contracts and can be lent to other users. The Aave Labs interface applies age, sanctions, and jurisdiction restrictions, and each transaction pays a Base gas fee.