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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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1Well, 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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Aave is a decentralized non-custodial liquidity protocol where users can participate as depositors or borrowers.
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