How to Earn Interest on ATOM with Aave: Step-by-Step Guide (2023)

Introduction: Earn Passive Income with ATOM on Aave

Want to put your idle Cosmos (ATOM) tokens to work? This step-by-step guide shows you how to earn interest on ATOM using Aave – the leading decentralized finance protocol. With Aave V3 now live on the Kava Network (a Cosmos SDK chain), you can supply native ATOM directly without complex wrapping. Follow these instructions to start generating passive crypto income today.

Prerequisites Before You Start

Gather these essentials:

  • ATOM tokens in a self-custody wallet (e.g., Keplr, MetaMask)
  • KAVA tokens for gas fees (0.1-0.5 KAVA recommended)
  • Web3 wallet with Kava Network configured (Keplr recommended)
  • Bridge access if transferring ATOM from non-Kava chains

Step 1: Bridge ATOM to Kava Network

  1. Go to Kava Bridge
  2. Connect your wallet (Keplr or Cosmos-compatible)
  3. Select “Cosmos Hub” as source chain and “Kava” as destination
  4. Enter ATOM amount and confirm transfer (takes ~10 minutes)

Note: Skip if already holding ATOM on Kava

Step 2: Connect to Aave V3 on Kava

  1. Visit Aave App
  2. Click “Connect wallet” (top-right)
  3. Select Keplr or WalletConnect if using mobile wallet
  4. Switch network to “Kava” when prompted

Step 3: Supply ATOM to Earn Interest

  1. In Aave dashboard, find “ATOM” under Supply Assets
  2. Click “Supply” and enter desired ATOM amount
  3. Review APY (Annual Percentage Yield) – typically 1-3% variable
  4. Approve transaction in wallet (requires KAVA gas fee)
  5. Confirm supply – you’ll now earn interest in real-time!

Step 4: Track & Manage Your Earnings

  • Monitor accrued interest in “Dashboard” > “Your Supplies”
  • Withdraw anytime: Click “Withdraw” next to ATOM position
  • Enable “Collateral” toggle to borrow against ATOM (increases risk)
  • Check real-time rates at DeFiLlama

Maximizing Your ATOM Earnings

  • Compound yields: Reinvest earned interest weekly
  • Stablecoin pairing: Supply USDT/USDC for higher APY (5-10%)
  • Safety first: Never deposit all assets – maintain liquidity
  • Gas optimization: Batch transactions during low-fee periods

Frequently Asked Questions (FAQ)

Can I earn interest on native ATOM without wrapping?

Yes! Aave V3 on Kava supports native ATOM – no wrapping required.

What’s the current ATOM APY on Aave?

Variable rates range 1-3% APY. Check the Aave app for live updates.

Is this safer than centralized exchanges?

Aave is audited and non-custodial, but smart contract risks exist. Never invest more than you can afford to lose.

Can I use MetaMask instead of Keplr?

Yes, but you’ll need to add Kava Network (ChainID 2222) and bridge ATOM via Kava.io first.

Are there withdrawal limits?

No – withdraw anytime, though network congestion may delay transactions.

Do I pay taxes on earned interest?

In most jurisdictions, yes. Consult a crypto tax professional.

Conclusion: Grow Your Cosmos Stack

By supplying ATOM to Aave on Kava, you’ve unlocked a seamless way to earn passive income on your crypto holdings. With this step-by-step process, you can start with as little as 1 ATOM and withdraw funds anytime. Remember to monitor rates regularly, compound your earnings, and never share your seed phrase. Ready to put your ATOM to work? Connect your wallet and start earning today!

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