Aave V3 Pool Operations

Supply Flow

┌──────────────────────────────────────────────────────────────┐
│                       SUPPLY FLOW                            │
├──────────────────────────────────────────────────────────────┤
│ 1. Validate: asset active, not paused, not frozen            │
│ 2. Validate: supply cap not exceeded                         │
│ 3. Update reserve indexes (accrue interest)                  │
│ 4. Transfer underlying from user to aToken contract          │
│ 5. Mint aTokens to onBehalfOf (scaled amount)                │
│ 6. Update virtual underlying balance                         │
│ 7. Update interest rates                                     │
│ 8. Enable asset as collateral (if first supply)              │
└──────────────────────────────────────────────────────────────┘

SupplyLogic

library SupplyLogic {
    function executeSupply(
        mapping(address => DataTypes.ReserveData) storage reservesData,
        mapping(uint256 => address) storage reservesList,
        DataTypes.UserConfigurationMap storage userConfig,
        DataTypes.ExecuteSupplyParams memory params
    ) external {
        DataTypes.ReserveData storage reserve = reservesData[params.asset];
        DataTypes.ReserveCache memory reserveCache = reserve.cache();

        reserve.updateState(reserveCache);

        // Validate supply
        ValidationLogic.validateSupply(reserveCache, reserve, params.amount);

        // Update interest rates and virtual balance
        reserve.updateInterestRatesAndVirtualBalance(
            reserveCache,
            params.asset,
            params.amount,  // liquidity added
            0               // liquidity taken
        );

        // Transfer and mint
        IERC20(params.asset).safeTransferFrom(msg.sender, reserveCache.aTokenAddress, params.amount);
        bool isFirstSupply = IAToken(reserveCache.aTokenAddress).mint(
            msg.sender,
            params.onBehalfOf,
            params.amount,
            reserveCache.nextLiquidityIndex
        );

        // Auto-enable as collateral on first supply
        if (isFirstSupply) {
            if (ValidationLogic.validateAutomaticUseAsCollateral(...)) {
                userConfig.setUsingAsCollateral(reserve.id, true);
            }
        }
    }
}

Withdraw Operations

withdraw()

Withdraw supplied assets:

function withdraw(
    address asset,    // Token to withdraw
    uint256 amount,   // Amount (type(uint256).max for all)
    address to        // Recipient of underlying
) public virtual returns (uint256);  // Actual amount withdrawn

Withdraw Flow

┌──────────────────────────────────────────────────────────────┐
│                      WITHDRAW FLOW                           │
├──────────────────────────────────────────────────────────────┤
│ 1. Update reserve indexes                                    │
│ 2. Calculate actual amount (handle max)                      │
│ 3. Validate health factor remains >= 1                       │
│ 4. Burn aTokens from user                                    │
│ 5. Transfer underlying to recipient                          │
│ 6. Update virtual balance                                    │
│ 7. Update interest rates                                     │
│ 8. Disable as collateral if balance becomes 0                │
└──────────────────────────────────────────────────────────────┘

Borrow Operations

borrow()

Borrow assets against collateral:

function borrow(
    address asset,              // Token to borrow
    uint256 amount,             // Amount to borrow
    uint256 interestRateMode,   // 2 = Variable (1 = deprecated stable)
    uint16 referralCode,        // Referral tracking
    address onBehalfOf          // Debt recipient (requires credit delegation)
) public virtual;

Borrow Flow

┌──────────────────────────────────────────────────────────────┐
│                       BORROW FLOW                            │
├──────────────────────────────────────────────────────────────┤
│ 1. Validate: asset active, not paused, borrowing enabled     │
│ 2. Validate: borrow cap not exceeded                         │
│ 3. Validate: health factor will remain >= 1                  │
│ 4. Validate: interest rate mode is VARIABLE                  │
│ 5. Validate: borrowable in user's eMode (if applicable)      │
│ 6. Update reserve indexes                                    │
│ 7. Mint debt tokens to onBehalfOf                            │
│ 8. Transfer underlying to msg.sender                         │
│ 9. Update interest rates                                     │
│ 10. Handle isolation mode debt ceiling                       │
└──────────────────────────────────────────────────────────────┘

BorrowLogic

library BorrowLogic {
    function executeBorrow(
        mapping(address => DataTypes.ReserveData) storage reservesData,
        mapping(uint256 => address) storage reservesList,
        mapping(uint8 => DataTypes.EModeCategory) storage eModeCategories,
        DataTypes.UserConfigurationMap storage userConfig,
        DataTypes.ExecuteBorrowParams memory params
    ) public {
        DataTypes.ReserveData storage reserve = reservesData[params.asset];
        DataTypes.ReserveCache memory reserveCache = reserve.cache();

        reserve.updateState(reserveCache);

        // Comprehensive validation
        ValidationLogic.validateBorrow(
            reservesData,
            reservesList,
            eModeCategories,
            DataTypes.ValidateBorrowParams({
                reserveCache: reserveCache,
                userConfig: userConfig,
                asset: params.asset,
                userAddress: params.onBehalfOf,
                amount: params.amount,
                interestRateMode: params.interestRateMode,
                reservesCount: params.reservesCount,
                oracle: params.oracle,
                userEModeCategory: params.userEModeCategory,
                priceOracleSentinel: params.priceOracleSentinel,
                isolationModeActive: isolationModeActive,
                isolationModeCollateralAddress: isolationModeCollateralAddress,
                isolationModeDebtCeiling: isolationModeDebtCeiling
            })
        );

        // Mint debt tokens
        IVariableDebtToken(reserveCache.variableDebtTokenAddress).mint(
            params.user,
            params.onBehalfOf,
            params.amount,
            reserveCache.nextVariableBorrowIndex
        );

        // Update rates and transfer
        reserve.updateInterestRatesAndVirtualBalance(
            reserveCache,
            params.asset,
            0,              // liquidity added
            params.amount   // liquidity taken
        );

        IAToken(reserveCache.aTokenAddress).transferUnderlyingTo(params.user, params.amount);
    }
}

Repay Operations

repay()

Repay borrowed assets:

function repay(
    address asset,              // Token to repay
    uint256 amount,             // Amount (type(uint256).max for all)
    uint256 interestRateMode,   // 2 = Variable
    address onBehalfOf          // Debt owner to repay for
) public virtual returns (uint256);  // Actual amount repaid

// With permit
function repayWithPermit(
    address asset,
    uint256 amount,
    uint256 interestRateMode,
    address onBehalfOf,
    uint256 deadline,
    uint8 permitV,
    bytes32 permitR,
    bytes32 permitS
) public virtual returns (uint256);

// Repay using aTokens (no transfer needed)
function repayWithATokens(
    address asset,
    uint256 amount,
    uint256 interestRateMode
) public virtual returns (uint256);

Repay Flow

┌──────────────────────────────────────────────────────────────┐
│                        REPAY FLOW                            │
├──────────────────────────────────────────────────────────────┤
│ 1. Update reserve indexes                                    │
│ 2. Calculate actual repay amount (cap at debt)               │
│ 3. Burn debt tokens from onBehalfOf                          │
│ 4. Transfer underlying from user (or burn aTokens)           │
│ 5. Update virtual balance                                    │
│ 6. Update interest rates                                     │
│ 7. Reduce isolation mode debt if applicable                  │
└──────────────────────────────────────────────────────────────┘

Liquidation

liquidationCall()

Liquidate an undercollateralized position:

function liquidationCall(
    address collateralAsset,    // Collateral to seize
    address debtAsset,          // Debt to repay
    address user,               // User to liquidate
    uint256 debtToCover,        // Amount of debt to repay
    bool receiveAToken          // Receive aTokens or underlying
) public virtual;

Liquidation Flow

┌──────────────────────────────────────────────────────────────┐
│                    LIQUIDATION FLOW                          │
├──────────────────────────────────────────────────────────────┤
│ 1. Validate: user health factor < 1                          │
│ 2. Validate: liquidation grace period has passed             │
│ 3. Calculate max liquidatable debt (close factor)            │
│ 4. Calculate collateral to receive (+ liquidation bonus)     │
│ 5. Burn debt tokens from user                                │
│ 6. Transfer debt payment from liquidator                     │
│ 7. Transfer collateral to liquidator (aTokens or underlying) │
│ 8. Handle deficit if bad debt occurs                         │
│ 9. Update interest rates                                     │
└──────────────────────────────────────────────────────────────┘

LiquidationLogic

library LiquidationLogic {
    // Close factor: max 50% of debt can be liquidated per call
    uint256 internal constant DEFAULT_LIQUIDATION_CLOSE_FACTOR = 0.5e4;

    // When HF < this threshold, 100% can be liquidated
    uint256 public constant CLOSE_FACTOR_HF_THRESHOLD = 0.95e18;

    function executeLiquidationCall(
        mapping(address => DataTypes.ReserveData) storage reservesData,
        mapping(uint256 => address) storage reservesList,
        mapping(address => DataTypes.UserConfigurationMap) storage usersConfig,
        mapping(uint8 => DataTypes.EModeCategory) storage eModeCategories,
        DataTypes.ExecuteLiquidationCallParams memory params
    ) external {
        // Validate liquidation is allowed
        LiquidationCallLocalVars memory vars;
        (vars.userGlobalCollateral, vars.userGlobalDebt, , , , vars.healthFactor) =
            GenericLogic.calculateUserAccountData(...);

        require(vars.healthFactor < HEALTH_FACTOR_LIQUIDATION_THRESHOLD, Errors.HEALTH_FACTOR_NOT_BELOW_THRESHOLD);

        // Calculate amounts
        (vars.actualDebtToLiquidate, vars.actualCollateralToLiquidate, vars.liquidationProtocolFeeAmount) =
            _calculateAvailableCollateralToLiquidate(...);

        // Execute liquidation
        _burnDebtTokens(...);
        _liquidateCollateral(...);
    }
}

Collateral Management

setUserUseReserveAsCollateral()

Enable/disable an asset as collateral:

function setUserUseReserveAsCollateral(
    address asset,
    bool useAsCollateral
) public virtual;

Constraints:

• Cannot disable if it would cause health factor < 1
• Cannot disable if asset is the only collateral backing debt

Account Data

getUserAccountData()

Get user's aggregate account information:

function getUserAccountData(address user) external view returns (
    uint256 totalCollateralBase,           // Total collateral in base currency
    uint256 totalDebtBase,                 // Total debt in base currency
    uint256 availableBorrowsBase,          // Remaining borrow capacity
    uint256 currentLiquidationThreshold,   // Weighted average LT
    uint256 ltv,                           // Current LTV
    uint256 healthFactor                   // HF (< 1 means liquidatable)
);

Health Factor Calculation

// Health Factor = Σ(Collateral × LT) / Total Debt
// If HF < 1, position can be liquidated

// Example:
// Collateral: 10 ETH @ $2000 = $20,000
// LT: 82.5%
// Debt: $15,000
// HF = ($20,000 × 0.825) / $15,000 = 1.10

Interest Rate Mode

Aave V3.2+ only supports variable rate:

enum InterestRateMode {
    NONE,
    __DEPRECATED,  // Was stable rate
    VARIABLE
}

Events

event Supply(address indexed reserve, address user, address indexed onBehalfOf, uint256 amount, uint16 indexed referralCode);
event Withdraw(address indexed reserve, address indexed user, address indexed to, uint256 amount);
event Borrow(address indexed reserve, address user, address indexed onBehalfOf, uint256 amount, DataTypes.InterestRateMode interestRateMode, uint256 borrowRate, uint16 indexed referralCode);
event Repay(address indexed reserve, address indexed user, address indexed repayer, uint256 amount, bool useATokens);
event LiquidationCall(address indexed collateralAsset, address indexed debtAsset, address indexed user, uint256 debtToCover, uint256 liquidatedCollateralAmount, address liquidator, bool receiveAToken);

Reference Files

• src/contracts/protocol/pool/Pool.sol - Main Pool contract
• src/contracts/protocol/libraries/logic/SupplyLogic.sol - Supply logic
• src/contracts/protocol/libraries/logic/BorrowLogic.sol - Borrow logic
• src/contracts/protocol/libraries/logic/LiquidationLogic.sol - Liquidation logic
• src/contracts/protocol/libraries/logic/ValidationLogic.sol - Validation logic
• src/contracts/protocol/libraries/logic/GenericLogic.sol - Account calculations