Aave ETH (AETH)
What is Aave ETH (AETH)
Aave ETH is part of the Aave aTokens. aTokens are interest-bearing derivatives tokens that are minted and burned upon deposit and redeem. It is pegged to ETH in a 1:1 ratio. Just like any other asset, it can be traded, stored, transferred, and more. aTokens is the equivalent of c-tokens from Compound or s-tokens from Synthetix in the Aave platform. Aave ETH, as its name suggest, is the equivalent of ETH that is deposited on the Aave lending platform to get interests.
Users can use this tokenized version of ETH for various purposes, such as gaining interest, taking another loan on a platform that supports Aave ETH, and more. A future plan of staking Aave ETH on other platforms might be possible, especially if the lending rates are competitive. While this is a tokenized token of ETH, does not mean that the price will always be equal to ETH due to market conditions.