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Aaveator.
Mar 20, 2023
Experten Q&A

Is there a risk of losing AAVE when staking it?

I am new to the AAVE and I don't hold a lot of it. I am interested in staking my AAVE crypto, but I have read that there is a chance of losing it. Is this true? Unlike staking with a non-custodial wallet where your funds are safe while staking, is there a risk of losing AAVE when staking it?

  • Aave Protocol
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Aaveator.
Mar 22 2023, 12:08

Well, first of all welcome to Aave forum! Ok so to answer your question properly, by staking your aave you receive stkaave wich is a syntetic version of your aave staked in the contract. By doing that you get an interest, and also helps securing the protocol. But, in case of a shortfall event, and always decided by governance, it may be possible to slash a % of your stkaave to help reduce the damage from a potential slashing event.

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