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

1. Check balance: wallet_balance to verify token holdings
2. Supply: aave_supply(chain="arbitrum", token="USDC", amount="100")
3. Verify: aave_positions(chain="arbitrum") — should show collateral

Check and withdraw

1. View positions: aave_positions(chain="arbitrum")
2. Withdraw partial: aave_withdraw(chain="arbitrum", token="USDC", amount="50")
3. 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)