Introduction

Withdrawing tokens from the Aave Protocol transfers underlying supplied assets along with any accrued interest, provided there is sufficient liquidity in the pool. This means suppliers can withdraw up to the amount available in the pool that is not currently borrowed. The process varies slightly depending on the type of token and the withdrawal method, and can be performed through protocl smart contracts or a frontend such as the Aave Labs interface.

Step 1: Connect Wallet

To begin, press ‘Connect Wallet’ and select the Ethereum wallet provider corresponding to the wallet where the tokens are supplied.

Step 2: Navigate to 'Your Supplies'

Once connected, navigate to the ‘Dashboard’ and locate the ‘Your Supplies’ section. This table displays all tokens you have supplied to the Aave Protocol.

Step 3: Select Token to Withdraw

Choose the token you wish to withdraw from the list. Verify that there is enough available liquidity in the pool to support your withdrawal. If the token is not being used as collateral for an active borrow position, you can proceed to withdraw the desired amount.

Step 4: Confirm Withdrawal

Enter the amount you want to withdraw and confirm the transaction in your wallet. If you are withdrawing the same underlying token that you supplied (e.g., WETH to WETH), no additional approval transaction is needed. However, if you’re withdrawing to a network base token, such as ETH, the Aave Protocol stores these as wrapped tokens (e.g., WETH). In this case, the withdrawal process involves the WrappedTokenGateway contract, where the WETH is unwrapped and withdrawn in a single transaction.

Step 5: Handling Collateralised Tokens

If your supplied tokens are used as collateral, you may need to repay part of your borrow position or supply additional collateral to maintain a healthy balance before you can withdraw. Regularly monitoring your health factor will help you manage this effectively.

Step 6: Withdrawing and Switching Tokens

The Aave Labs interface also offers a feature to withdraw and switch to a different token in one action. This requires token approval for both the withdrawal and the switch. Ensure you review the necessary approvals in your wallet before proceeding.