Repay

Repaying borrowed tokens in the Aave Protocol is an important step for managing borrow positions. Borrowers can repay using the same tokens they borrowed, or repay with aTokens (collateral tokens) of the same underlying token. In addition, there are periphery contracts available that simplify the process by allowing repayment with other tokens, such as other collateral assets, without the need to manually convert them beforehand. This flexibility makes it easier for borrowers to manage and close their positions when needed.

Repayment increases the collateralisation ratio, ensuring adequate collateralization and preventing liquidation. By boosting the collateral relative to what is borrowed, repayment prevents assets from being liquidated and allows borrowers to safely withdraw part of their collateral.