Aave Lending

DeFiYieldEmbedded Wallet

Integrate Aave V3 lending into your app using CDP Embedded Wallets. Users can deposit tokens to earn yield, all with familiar sign-in methods and optional gasless transactions.

This guide covers Aave V3, the current production version deployed on Base and other networks. Aave V4 is in testnet as of February 2026.

Aave Docs

Aave protocol documentation

Embedded Wallets

CDP Embedded Wallet overview

Why CDP for DeFi

Feature	Benefit
Enterprise-grade	Same infrastructure powering DeFi at massive scale in the Coinbase app
Gasless transactions	Smart accounts + CDP Paymaster on supported networks — users don’t need ETH
Built-in onramp	Users buy crypto directly in your app
Familiar auth	Email, SMS, Google, Apple, X, Custom — no seed phrases

Integration options

There are two ways to integrate Aave:

Supply directly: Users deposit tokens into Aave pools and earn interest
Managed vaults: Deploy ERC-4626 vaults that hold aTokens, allowing you to manage deposits and earn fees on yield

This guide demonstrates both approaches on Base Sepolia. For production, use Base mainnet or other networks where both Aave V3 and CDP smart accounts are supported.

Setup

Install packages

npm

npm install @aave/react@latest @coinbase/cdp-core @coinbase/cdp-hooks

Configure providers

App.tsx

import { CDPHooksProvider } from "@coinbase/cdp-hooks";
import { AaveProvider, AaveClient } from "@aave/react";

// Configure CDP Embedded Wallets
const cdpConfig = {
  projectId: "your-project-id",
  ethereum: {
    // Use "smart" for gasless transactions via CDP Paymaster
    // Use "eoa" for standard EOA wallets
    createOnLogin: "smart"
  }
};

// Initialize Aave SDK client
const aaveClient = AaveClient.create();

export function App() {
  return (
    // Wrap your app with both providers
    <CDPHooksProvider config={cdpConfig}>
      <AaveProvider client={aaveClient}>
        <YourApp />
      </AaveProvider>
    </CDPHooksProvider>
  );
}

Supply directly to Aave

The simplest integration — users deposit tokens and earn interest immediately.

SupplyToAave.tsx

import { useState } from "react";
import { useSupply, bigDecimal } from "@aave/react";
import { useSendEvmTransaction, useEvmAddress } from "@coinbase/cdp-hooks";

// Aave V3 Pool address on Base Sepolia testnet
const AAVE_POOL = "0x8bAB6d1b75f19e9eD9fCe8b9BD338844fF79aE27";

export function SupplyToAave() {
  // Get the user's wallet address from CDP
  const { evmAddress } = useEvmAddress();
  // Hook to send transactions via CDP Embedded Wallet
  const { sendEvmTransaction } = useSendEvmTransaction();
  // Aave SDK hook to prepare supply transactions
  const [supply] = useSupply();
  const [amount, setAmount] = useState("0.01");

  // Helper to convert Aave SDK transaction data to CDP format and execute
  const executeTransaction = (tx: { to: string; data: string; value: string; chainId: number }) =>
    sendEvmTransaction({
      transaction: { to: tx.to, data: tx.data, value: BigInt(tx.value), chainId: tx.chainId },
      evmAccount: evmAddress!,
      network: "base-sepolia",
    });

  const handleSupply = async () => {
    if (!evmAddress) return;

    // Prepare the supply transaction via Aave SDK
    const prepareResult = await supply({
      market: AAVE_POOL,
      amount: { native: bigDecimal(parseFloat(amount)) },
      sender: evmAddress,
      chainId: 84532 // Base Sepolia
    });

    if (prepareResult.isErr()) {
      console.error("Supply failed:", prepareResult.error);
      return;
    }

    const preparedTx = prepareResult.value;

    // Aave SDK returns different types based on token allowance
    if (preparedTx.__typename === "ApprovalRequired") {
      // Token needs approval first, then supply
      await executeTransaction(preparedTx.approval);
      await executeTransaction(preparedTx.originalTransaction);
    } else if (preparedTx.__typename === "TransactionRequest") {
      // Token already approved, supply directly
      await executeTransaction(preparedTx);
    }
  };

  return (
    <div>
      <input value={amount} onChange={(e) => setAmount(e.target.value)} />
      <button onClick={handleSupply}>Supply {amount} ETH</button>
    </div>
  );
}

Withdraw from Aave

WithdrawFromAave.tsx

import { useState } from "react";
import { useWithdraw, bigDecimal } from "@aave/react";
import { useSendEvmTransaction, useEvmAddress } from "@coinbase/cdp-hooks";

// Aave V3 Pool address on Base Sepolia testnet
const AAVE_POOL = "0x8bAB6d1b75f19e9eD9fCe8b9BD338844fF79aE27";

export function WithdrawFromAave() {
  const { evmAddress } = useEvmAddress();
  const { sendEvmTransaction } = useSendEvmTransaction();
  // Aave SDK hook to prepare withdraw transactions
  const [withdraw] = useWithdraw();
  const [amount, setAmount] = useState("0.01");

  // Helper to convert Aave SDK transaction data to CDP format and execute
  const executeTransaction = (tx: { to: string; data: string; value: string; chainId: number }) =>
    sendEvmTransaction({
      transaction: { to: tx.to, data: tx.data, value: BigInt(tx.value), chainId: tx.chainId },
      evmAccount: evmAddress!,
      network: "base-sepolia",
    });

  const handleWithdraw = async () => {
    if (!evmAddress) return;

    // Prepare the withdraw transaction via Aave SDK
    const prepareResult = await withdraw({
      market: AAVE_POOL,
      amount: { native: bigDecimal(parseFloat(amount)) },
      sender: evmAddress,
      chainId: 84532 // Base Sepolia
    });

    if (prepareResult.isErr()) {
      console.error("Withdraw failed:", prepareResult.error);
      return;
    }

    const preparedTx = prepareResult.value;

    // Withdraw typically doesn't require approval (you own the aTokens)
    if (preparedTx.__typename === "TransactionRequest") {
      await executeTransaction(preparedTx);
    }
  };

  return (
    <div>
      <input value={amount} onChange={(e) => setAmount(e.target.value)} />
      <button onClick={handleWithdraw}>Withdraw {amount} ETH</button>
    </div>
  );
}

Create a managed vault

Deploy an ERC-4626 vault to manage user deposits and earn fees on yield generated.

DeployVault.tsx

import { useAaveReserve, useVaultDeploy, bigDecimal } from "@aave/react";
import { useSendEvmTransaction, useEvmAddress } from "@coinbase/cdp-hooks";

// Contract addresses for Base Sepolia
const AAVE_POOL = "0x8bAB6d1b75f19e9eD9fCe8b9BD338844fF79aE27";
const WETH = "0x4200000000000000000000000000000000000006";

export function DeployVault() {
  const { evmAddress } = useEvmAddress();
  const { sendEvmTransaction } = useSendEvmTransaction();
  // Aave SDK hook to deploy ERC-4626 vaults
  const [deployVault] = useVaultDeploy();

  // Fetch reserve data for the underlying token (needed for vault config)
  const { data: reserve } = useAaveReserve({
    market: AAVE_POOL,
    underlyingToken: WETH,
    chainId: 84532,
    suspense: true
  });

  // Helper to convert Aave SDK transaction data to CDP format and execute
  const executeTransaction = (tx: { to: string; data: string; value: string; chainId: number }) =>
    sendEvmTransaction({
      transaction: { to: tx.to, data: tx.data, value: BigInt(tx.value), chainId: tx.chainId },
      evmAccount: evmAddress!,
      network: "base-sepolia",
    });

  const handleDeploy = async () => {
    if (!evmAddress || !reserve) return;

    // Configure and deploy the vault
    const prepareResult = await deployVault({
      market: reserve.market.address,
      chainId: 84532,
      underlyingToken: reserve.underlyingToken.address,
      deployer: evmAddress,
      initialFee: bigDecimal(3),           // 3% fee on yield earned
      shareName: "My WETH Vault",          // ERC-20 name for vault shares
      shareSymbol: "myWETH",               // ERC-20 symbol for vault shares
      initialLockDeposit: bigDecimal(0.01) // Required initial deposit
    });

    if (prepareResult.isErr()) {
      console.error("Deploy failed:", prepareResult.error);
      return;
    }

    const preparedTx = prepareResult.value;

    // Handle approval + deploy, or direct deploy
    if (preparedTx.__typename === "ApprovalRequired") {
      await executeTransaction(preparedTx.approval);
      await executeTransaction(preparedTx.originalTransaction);
    } else if (preparedTx.__typename === "TransactionRequest") {
      await executeTransaction(preparedTx);
    }
  };

  return <button onClick={handleDeploy}>Deploy Vault</button>;
}

Deposit into a vault

DepositToVault.tsx

import { useVault, useVaultDeposit, bigDecimal } from "@aave/react";
import { useSendEvmTransaction, useEvmAddress } from "@coinbase/cdp-hooks";

export function DepositToVault({ vaultAddress }: { vaultAddress: string }) {
  const { evmAddress } = useEvmAddress();
  const { sendEvmTransaction } = useSendEvmTransaction();
  // Aave SDK hook to deposit into existing vaults
  const [deposit] = useVaultDeposit();

  // Fetch vault details (underlying token, reserve info, etc.)
  const { data: vault } = useVault({
    by: { address: vaultAddress },
    chainId: 84532
  });

  // Helper to convert Aave SDK transaction data to CDP format and execute
  const executeTransaction = (tx: { to: string; data: string; value: string; chainId: number }) =>
    sendEvmTransaction({
      transaction: { to: tx.to, data: tx.data, value: BigInt(tx.value), chainId: tx.chainId },
      evmAccount: evmAddress!,
      network: "base-sepolia",
    });

  const handleDeposit = async () => {
    if (!evmAddress || !vault) return;

    // Prepare deposit transaction
    const prepareResult = await deposit({
      chainId: vault.chainId,
      vault: vault.address,
      amount: {
        currency: vault.usedReserve.underlyingToken.address,
        value: bigDecimal(0.1) // Amount of underlying token to deposit
      },
      depositor: evmAddress
    });

    if (prepareResult.isErr()) {
      console.error("Deposit failed:", prepareResult.error);
      return;
    }

    const preparedTx = prepareResult.value;

    // Handle approval + deposit, or direct deposit
    if (preparedTx.__typename === "ApprovalRequired") {
      await executeTransaction(preparedTx.approval);
      await executeTransaction(preparedTx.originalTransaction);
    } else if (preparedTx.__typename === "TransactionRequest") {
      await executeTransaction(preparedTx);
    }
  };

  return <button onClick={handleDeposit}>Deposit 0.1 WETH</button>;
}

Add onramp (optional)

Let users buy crypto before supplying to Aave:

import { Fund } from "@coinbase/cdp-react";

// One-click fiat-to-crypto onramp — users can buy ETH with card/bank
<Fund asset="ETH" network="base" onSuccess={() => console.log("Funded!")} />

Key concepts

Concept	Description
aTokens	Interest-bearing tokens representing your deposit. Balance grows automatically as yield accrues.
Vaults	ERC-4626 wrappers that let apps manage deposits on behalf of users and earn fees on yield.

Production tips

For mainnet, replace Base Sepolia addresses with Base mainnet Pool and token addresses
Query getReserveData() to display current APY to users
Add error handling for failed transactions and insufficient balances

Demo Apps

Aave Docs

Embedded Wallets

Why CDP for DeFi

Integration options

Setup

Install packages

Configure providers

Supply directly to Aave

Withdraw from Aave

Create a managed vault

Deposit into a vault

Add onramp (optional)

Key concepts

Production tips

Resources

AaveKit React

Gas Sponsorship

Demo Apps

Aave Docs

Embedded Wallets

​Why CDP for DeFi

​Integration options

​Setup

​Install packages

​Configure providers

​Supply directly to Aave

​Withdraw from Aave

​Create a managed vault

​Deposit into a vault

​Add onramp (optional)

​Key concepts

​Production tips

​Resources

AaveKit React

Gas Sponsorship

Why CDP for DeFi

Integration options

Setup

Install packages

Configure providers

Supply directly to Aave

Withdraw from Aave

Create a managed vault

Deposit into a vault

Add onramp (optional)

Key concepts

Production tips

Resources