Question 1

What is Health Factor in DeFi?

Accepted Answer

Health Factor is a number that represents the safety of your loan position. A Health Factor above 1 means your position is safe. Below 1 means you can be liquidated. Higher is safer - most experts recommend keeping it above 1.5.

Question 2

What is LTV (Loan-to-Value)?

Accepted Answer

LTV is the ratio of your borrowed amount to your collateral value. For example, if you deposit $1000 and borrow $500, your LTV is 50%. Each asset has a maximum LTV allowed by the protocol.

Question 3

What happens during liquidation?

Accepted Answer

When your Health Factor drops below 1, liquidators can repay part of your debt and claim your collateral at a discount (usually 5-10% bonus). This protects the protocol but costs you money.

Question 4

Is this simulator connected to real Aave?

Accepted Answer

No, this is a practice simulator. It uses real market prices but does not connect to any blockchain. Your funds are never at risk - it's purely educational.

Aave DeFi Stacking Simulator

Live Prices

Start Your DeFi Journey

Or Try a Strategy Preset

Strategy Presets

Passive Stablecoin Yield

ETH Holder Yield

Cash Out Without Selling (Safe)

Moderate ETH Leverage

Stablecoin Rate Arbitrage

Aggressive ETH Leverage

BTC + ETH Diversified Leverage

Maximum Leverage (Degen Mode)

Short ETH Position

How This Simulator Works