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Aaveator138
Jan 29, 2023
Expert Q&A
How does Atoken automatically accure its value?
Hey can anyone tell me how Aave atoken automatically accures its value?
- Aave Protocol
- aTokens
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1Aaveator138
Feb 2 2023, 17:24Each borrowable asset has a liquidityIndex, which is constantly increasing at a rate determined by the amount of interest being paid by all borrowers. Every Aave aToken holder earns interest proportional to their share of the Aave pool, so their real-time balance is
scaledATokenBalance * liquidtyIndex
where
scaledATokenBalance = suppliedAmount / liquidityIndexAtTimeOfSupply
More info.
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Aave is a decentralized non-custodial liquidity protocol where users can participate as depositors or borrowers.
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