Detailed Instructions

First, you must connect a non-custodial Web3 wallet like MetaMask to a DeFi platform's interface. Ensure your wallet is funded with base assets such as Ethereum (ETH) for gas fees and the specific tokens you intend to use. For example, to supply DAI to Aave, you need DAI in your wallet. Acquire these via a centralized exchange or a DEX like Uniswap. Gas fees (transaction costs on Ethereum) vary, so check current network conditions.

• Sub-step 1: Install and fund a MetaMask wallet. Ensure you have ETH for gas.
• Sub-step 2: Navigate to the protocol's official web app (e.g., app.aave.com).
• Sub-step 3: Click "Connect Wallet" and select your wallet provider.
• Sub-step 4: Verify your wallet's network is set to Ethereum Mainnet or the correct Layer 2.

Tip: Always use official links to avoid phishing sites. Consider using a hardware wallet for large sums.

Detailed Instructions

On protocols like AAVE or Compound, you supply or deposit assets into a liquidity pool. This action mints a receipt token (like aTokens or cTokens) representing your share and accruing interest. For instance, supplying 100 DAI to Aave mints 100 aDAI in your wallet. This step is often prerequisite for borrowing. The Loan-to-Value (LTV) ratio determines how much you can borrow against your collateral. Always monitor the health factor, a safety metric; if it drops below 1, your position may be liquidated.

• Sub-step 1: On Aave's dashboard, select the asset (e.g., DAI) and click "Supply".
• Sub-step 2: Enter the amount (e.g., 100 DAI) and approve the token contract interaction.
• Sub-step 3: Confirm the transaction in your wallet, paying the gas fee.
• Sub-step 4: Verify your wallet balance now shows aDAI tokens and your supplied balance on the UI.

Tip: Start with a small amount to test. Interest rates are variable; check between protocols for the best APY.

Detailed Instructions

On Uniswap V3, you can swap tokens directly from your connected wallet. The protocol uses constant product market maker formulas and concentrated liquidity. You'll encounter slippage tolerance (the maximum price movement you accept) and swap fees (0.05%, 0.30%, or 1.00% per pool). Always check the quoted exchange rate. For a swap from 1 ETH to DAI, you might use a command in the interface to find the best route across multiple pools.

• Sub-step 1: Go to app.uniswap.org and connect your wallet.
• Sub-step 2: Select input token (ETH) and output token (DAI). Enter the amount.
• Sub-step 3: Set your slippage tolerance (e.g., 0.5%) and review the fee.
• Sub-step 4: Click "Swap", approve the token spend if it's your first time, then confirm.

codeCopy
// Example Uniswap V3 SwapParameters struct core concept
struct ExactInputSingleParams {
    address tokenIn;
    address tokenOut;
    uint24 fee; // e.g., 3000 for 0.30%
    address recipient;
    uint256 deadline;
    uint256 amountIn;
    uint256 amountOutMinimum;
    uint160 sqrtPriceLimitX96;
}

Tip: Use the "Expert Mode" cautiously. For large swaps, consider splitting into smaller transactions to minimize slippage.

Detailed Instructions

After supplying assets (Step 2), you can borrow other assets on Aave or Compound, creating a leveraged or hedging position. Your borrowing power is limited by your collateral's LTV ratio. Borrowing accrues interest, which compounds. The critical metric is your health factor (HF). On Aave, an HF below 1 triggers liquidation. You can borrow stablecoins (like USDC) or volatile assets (like ETH). Always have a plan to repay or manage the debt.

• Sub-step 1: In the "Borrow" section, select the asset to borrow (e.g., 500 USDC).
• Sub-step 2: The interface shows your available borrowing power based on collateral. Confirm the variable or stable interest rate.
• Sub-step 3: Execute the borrow transaction. The borrowed assets are sent to your wallet.
• Sub-step 4: Immediately check your updated health factor on the dashboard.

codeCopy
// Simplified view of a key Aave health factor calculation
// Health Factor = (Total Collateral in ETH * Liquidation Threshold) / Total Borrows in ETH
// Example: If collateral is 10 ETH (Threshold 80%) and borrows are 5 ETH:
// Health Factor = (10 * 0.8) / 5 = 1.6

Tip: Borrow conservatively. A health factor above 2 is safer. Monitor interest rates, as they can change with market conditions.

Detailed Instructions

Active management is crucial in DeFi. You must regularly monitor your supplied assets' APY, borrowed assets' interest rate, and most importantly, your health factor. Use dashboards like Aave's "Dashboard" or DeFi portfolio trackers. You may need to add more collateral or repay part of your debt to avoid liquidation if prices move against you. You can also claim accrued rewards (like stkAAVE incentives) or withdraw your supplied assets (which requires repaying any outstanding borrows first on most protocols).

• Sub-step 1: Daily, check your positions on the protocol's dashboard for HF and rates.
• Sub-step 2: If HF nears 1.1, either repay some debt via the "Repay" tab or add collateral via "Supply".
• Sub-step 3: To withdraw, first ensure your HF remains safe after the withdrawal reduces your collateral.
• Sub-step 4: Claim any governance or liquidity mining rewards from the "Rewards" section.

Tip: Set up price alerts for your collateral assets. Use DeFi Saver or Instadapp for automated position management.

Detailed Instructions

The final step involves repaying all borrowed funds and withdrawing your supplied collateral. On Aave, you must repay in the same asset you borrowed. After full repayment, your health factor becomes infinite, allowing you to withdraw all supplied assets by burning your aTokens. On Uniswap, simply ensure you have the desired token balance in your wallet. Always confirm transactions on-chain and verify final wallet balances. Remember that gas fees are required for each transaction.

• Sub-step 1: Navigate to the "Repay" section for each open borrow. Repay the full amount (plus accrued interest).
• Sub-step 2: After repayments are confirmed, go to the "Withdraw" section for your supplied assets.
• Sub-step 3: Select the asset and withdraw the maximum amount. This burns your aTokens/cTokens.
• Sub-step 4: Verify the native tokens (e.g., DAI, ETH) are back in your connected wallet address (e.g., 0x742d35Cc6634C0532925a3b844Bc9e...).

Tip: Perform exits during low network congestion to save on gas. Double-check that no tiny debt dust remains, as it can still be liquidated.