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TVL $68MAPY 0.03%low riskUpdated Feb 1, 2025

Aave Arbitrum LINK

Supply LINK to Aave V3 on Arbitrum. Use Chainlink tokens as collateral in the Arbitrum ecosystem with lower management costs.

ProtocolAave V3
Networkarbitrum
SymbolAARBLINK
CategoryMoney Markets
Underlying Assets
LINK
Contract Address0x191c10aa4af7c30e871e70c95db0e4eb77237530

What is Aave Arbitrum LINK?

Aave Arbitrum LINK is a lending market for Chainlink's LINK token on Aave V3's Arbitrum deployment. This market allows LINK holders to use their tokens as collateral or earn yield within Arbitrum's DeFi ecosystem, with the benefit of lower transaction costs for position management.

How This Market Works

LINK lending on Arbitrum follows standard patterns:

  1. Bridge LINK to Arbitrum
  2. Deposit into Aave V3 lending pool
  3. Receive aArbLINK tokens representing your deposit
  4. Earn interest from LINK borrowers (typically low)
  5. Withdraw LINK plus yield anytime
Low Borrowing Demand: Like mainnet, LINK on Arbitrum primarily serves as collateral rather than being borrowed directly, resulting in low supply APY.

What Assets Are Involved

Supply Asset: LINK on Arbitrum (bridged from Ethereum) Receipt Token: aArbLINK - Aave Arbitrum deposit token

LINK on Arbitrum is used for:

  • Collateral for borrowing stablecoins
  • Maintaining LINK exposure while accessing DeFi liquidity
  • Lower-cost collateral ratio management
  • Arbitrum-native DeFi strategies

Chainlink on Arbitrum

Chainlink infrastructure on Arbitrum includes:

  • Price feeds for Arbitrum DeFi protocols
  • VRF for randomness
  • Automation (Keepers) for protocol maintenance
  • CCIP integration for cross-chain operations

Risk Disclosures

Smart Contract Risk: Exposure to Aave V3 and bridge contracts. Price Volatility: LINK is volatile. Significant price movements affect collateral positions. Bridge Risk: Bridged LINK adds bridge contract security considerations. Layer 2 Risk: Arbitrum sequencer centralization and potential downtime. Withdrawal Delay: 7-day challenge period for official exits. Low Utilization: Limited LINK borrowing means low supply yields. Token Utility Risk: LINK value depends on continued Chainlink adoption. Oracle Risk: Accurate LINK pricing on L2 is essential for proper protocol operation.

Related Money Markets

Aave Ethereum WETH1.25% APYAave Ethereum USDT2.45% APYAave Ethereum wstETH0.01% APYAave Ethereum USDC3.47% APYAave Ethereum WBTC0.01% APY
Disclaimer: APY and TVL figures are based on on-chain data and may fluctuate. Past performance does not guarantee future results. DeFi investments carry smart contract, market, and liquidity risks. This content is for informational purposes only and does not constitute financial advice. Always conduct your own research before investing.

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