Aave provides onchain infrastructure for supplying and borrowing assets. Its protocol documentation describes how supplied assets, collateral, debt and withdrawals work.
A company using DeFi needs to distinguish the value of a protocol position from funds available for a payment.
What the protocol position represents
Supplying an asset to Aave creates an interest-bearing position. Withdrawal depends on available liquidity and, where borrowing is involved, the position’s collateral requirements. Borrowing creates debt with interest and liquidation conditions.
These are protocol mechanics. They should be considered when deciding whether funds can be made available for an operational payment.
Where Holyheld fits
Holyheld connects supported digital assets to payments and named USD and EUR accounts. Its DeFi integrations bring onchain activity closer to the company’s wider account and payment workflow.
For a specific transaction, confirm the supported asset, the available route and how the source funds become available. The applicable protocol action, conversion and fiat payment each need to be understood.
Example: fund an existing obligation
A company has an onchain position and needs funds for a supplier invoice. Its finance team checks the position’s withdrawal or borrowing conditions, determines the amount available and reviews the supported payment route. It records any protocol action separately from conversion, fees and the supplier payment. This is an illustrative workflow.
A position earning interest does not establish that a loan repays itself, or that funds remain available on the same terms at every moment. The protocol documentation and the position’s current state determine those conditions.
Plan the payment separately
For moving available stablecoins to a bank account, see Off-ramp. Discuss transactions that need an individual quote with your concierge. The payment guide explains how to keep the records for each stage together.