The migration from LEND to AAVE is the first step in the Aavenomics. Migrating your LEND to AAVE allows you to participate actively in the Aave Protocol governance and stake within the protocol Safety Module.
The migration ratio is 100 LEND to 1 AAVE, so if you migrate 100 LEND you will end up having 1 AAVE, or if you migrate 1 LEND you will have 0.01 AAVE. You do not need to have an exact amount-- the migration will be performed following that ratio. Some examples for clarification: - 343,295 LEND to 3432.95 AAVE - 0.3 LEND to 0.003 AAVE - 57 LEND to 0.57 AAVE
The process to migrate from LEND to AAVE is quite similar to a deposit. You just need to enter the Aave app and go to the migration portal. Then you need to execute 2 transactions to perform the migration: 1. Approve: This is a required transaction prior to the migration allowing the migration contract to move your LEND tokens to migrate them to AAVE. This transaction won't be required if you perform additional migration actions unless you revoke the approval. 2. Upgrade LEND to AAVE: This transaction performs the upgrade from LEND tokens to AAVE tokens. When confirmed, you will have your new AAVE tokens in your wallet.
Staking consists of depositing your AAVE tokens within the protocol Safety Module. The purpose of staking is to act as a mitigation tool in case of a shortfall event. As an incentive for this, Safety Module stakers will receive Safety Incentives.
In the case of a shortfall event, the Safety Module uses up to 30% of the assets locked to cover the deficit.
Stakers within the Safety Module receive Safety Incentives. The initial SI rewards are 550 AAVE/day to be split between the stakers. The Safety Incentive's allocation quarterly date should be voted on before the end of the 3 months (90 days) distribution schedule. In the case of a late or no vote on a new SI allocation plan, the current allocation will continue until a vote or until the Aave Reserve is empty.
To stake you can head over to the Aave app's Staking section. Over the staking section select 'stake', input the amount to stake and click on 'stake'. Then proceed to send 2 transactions to stake your AAVE: 1. Approve: This is a required transaction prior to the staking that allows the staking contract to move your AAVE tokens. This transaction won't be required if you perform additional staking actions unless you revoke the approval. 2. Stake AAVE: This transaction performs the action to stake AAVE tokens. When confirmed, your tokens will be staked in the Safety Module.
If you want to stop staking, head over to the Aave app in the Staking section. Over the staking section select 'Unstake', input the amount and click on 'unstake'. - If you did not activate the cooldown period, you will need to activate it. This consists of 1 transaction to activate the cooldown. When the cooldown period finishes, you will be able to unstake by following the next step. - Unstake AAVE: This transaction performs the action to unstake AAVE tokens. When confirmed, your AAVE tokens will be back in your wallet. *After the cooldown period passes there is a 2 day window to unstake! If you do not unstake during that period you will need to activate the cooldown again.
The cooldown period is the time required prior to unstaking your tokens. You must start the cooldown period before you can unstake your tokens. You can start the cooldown period by going to the staking section, select 'unstake' and click on 'activate cooldown'. It will require one transaction to be sent. The cooldown period by default is 10 days, but this can be further extended by the governance.
IMPORTANT: After the cooldown period is complete, you have a 2 day window where you can unstake. If you do not unstake during that period, you will have to start the cooldown process over again.
If the cooldown period was activated 10 days and 4 hours ago, you can unstake!
If the cooldown period was activated 12 days and 2 hours ago, you can not unstake, and you will need to start the 10 day cooldown period again.
You can stake more AAVE tokens in the Safety Module or receive stkAAVE, but that would increase your cooldown period based on the amount received. Even if the amount received is big enough, it will reset your cooldown period requiring you to activate it again before you can unstake.
You can claim your rewards at any time over the staking section clicking on "Claim". The AAVE tokens from the reward will be in your connected wallet as soon as the transaction is confirmed.
If you want to find out more about Aave Protocol Aavenomics, you can find the whole documentation here. Also, this tutorial takes you through the migration and staking process:
Source: Every Bit Helps