Updated 2026-08-25
What Is an Aave Debt Swap?
An Aave debt swap is an atomic transaction that allows borrowers to convert existing debt liabilities from one token to another without needing to repay the loan upfront.
Read Guide
DeFi Knowledge Hub
Aave Learning Hub & Guides
Master Aave lending dynamics, Health Factor calculations, liquidation defense, and position optimization with our technical guides.
Updated 2026-08-25
Aave Collateral Swap Explained
An Aave collateral swap allows borrowers to exchange their deposited collateral asset for a different supported token without closing active debt positions or withdrawing funds manually.
Read Guide
Updated 2026-08-25
Aave Health Factor Explained
The Aave Health Factor is a numeric representation of the safety of your borrowed assets against your deposited collateral. A Health Factor above 1.0 indicates a solvent position, while a value below 1.0 triggers liquidation.
Read Guide
Updated 2026-08-25
What Happens When Aave Health Factor Reaches 1?
When your Aave Health Factor reaches or falls below 1.0, your loan position becomes insolvent and becomes eligible for public liquidation by liquidator bots.
Read Guide
Updated 2026-08-25
How to Avoid Aave Liquidation
To avoid Aave liquidation, borrowers can implement automated Health Factor monitoring, top up collateral, partially repay debt, or execute atomic debt and collateral swaps.
Read Guide
Updated 2026-08-25
Aave LTV vs Liquidation Threshold
Maximum LTV defines how much you can borrow when initiating a loan, while Liquidation Threshold determines the point at which your existing loan becomes undercollateralized and vulnerable to liquidation.
Read Guide
Updated 2026-08-25
How to Lower Your Aave Borrow Interest Rate
Borrowers on Aave can lower ongoing interest expenses by identifying debt tokens with lower variable APYs and executing an atomic debt swap to transition liabilities.
Read Guide
Updated 2026-08-25
Aave Collateral Swap vs Manual Withdraw & Deposit
Atomic collateral swaps replace 4 manual transaction steps with 1 unified flash loan operation, eliminating temporary debt payoff requirements and reducing transaction friction.
Read Guide