lending

name	lending
description	Supply, borrow, repay, and check health factors on Aave V3 lending protocol on Base

Lending & Borrowing

Use the defi_lend tool for lending protocol operations on Aave V3 (Base).

When to Use

• User wants to earn yield on idle assets → supply
• User wants to borrow against collateral → borrow
• User asks about liquidation risk → health_factor
• User wants to see what they've supplied/borrowed → positions
• User wants to repay debt → repay
• User wants to withdraw collateral → withdraw

Key Concepts

Health Factor: Ratio of collateral value to debt. Below 1.0 = liquidation. Keep above 1.5 for safety.

• 2.0: Healthy

• 1.5-2.0: Moderate, consider adding collateral
• 1.1-1.5: Warning zone
• < 1.1: Danger, immediate action needed

LTV (Loan-to-Value): Maximum percentage of collateral value you can borrow. Varies by asset.

Liquidation Threshold: Collateral value at which liquidation can be triggered. Always higher than LTV.

Supported Assets (Base)

Asset	Supply	Borrow
ETH (WETH)	Yes	Yes
USDC	Yes	Yes
cbETH	Yes	Yes
USDbC	Yes	Yes

Common Flows

Earn yield on USDC

defi_lend action=supply asset=USDC amount=1000

Borrow against ETH collateral

defi_lend action=supply asset=ETH amount=1.0    # First supply collateral
defi_lend action=borrow asset=USDC amount=500   # Then borrow

Repay and withdraw

defi_lend action=repay asset=USDC amount=max     # Repay all debt
defi_lend action=withdraw asset=ETH amount=max   # Withdraw all collateral

Safety Rules

1. Always check health factor before borrowing — use health_factor action first
2. Never let health factor drop below 1.5 — warn the user if a borrow would push it below
3. Use "max" for full repay/withdraw — avoids dust amount issues
4. Supply before borrow — you need collateral first
5. Monitor positions after volatile moves — suggest periodic health checks