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Aave V3 collateral workflow

Use this workflow to enable or disable an asset as collateral on Aave V3.

Flow

  1. Resolve chain, asset address, and pool address.
  2. Check current collateral status and health factor.
  3. Query the Aave API for the collateral toggle transaction.
  4. Execute toggle.

Resolve chain and addresses

If the user doesn't specify a chain, ask. Look up the pool address:

Chain Chain ID Pool address
Ethereum 1 0x87870Bca3F3fD6335C3F4ce8392D69350B4fA4E2
Polygon 137 0x794a61358D6845594F94dc1DB02A252b5b4814aD
Arbitrum 42161 0x794a61358D6845594F94dc1DB02A252b5b4814aD
Optimism 10 0x794a61358D6845594F94dc1DB02A252b5b4814aD
Avalanche 43114 0x794a61358D6845594F94dc1DB02A252b5b4814aD
Base 8453 0x794a61358D6845594F94dc1DB02A252b5b4814aD

Check status

Query the user's positions using aave-positions.md. For the target asset, check whether collateral is enabled or disabled (isCollateral).

The user must have a non-zero supply of the asset to toggle collateral.

When disabling collateral, check the health factor. If the user has outstanding borrows, disabling collateral lowers the health factor. Show the impact. If the health factor would drop below 1.0, stop and tell the user to repay debt first via aave-repay.md.

Query collateral toggle transaction

Get the wallet address and query the Aave V3 GraphQL API:

mm wallet address
curl -s -X POST https://api.v3.aave.com/graphql \
  -H 'Content-Type: application/json' \
  -d '{
    "query": "{ collateralToggle(request: { market: \"<POOL_ADDRESS>\", underlyingToken: \"<ASSET_ADDRESS>\", user: \"<WALLET_ADDRESS>\", chainId: <CHAIN_ID> }) { to from data value chainId } }"
  }'

The API returns a TransactionRequest with {to, from, data, value, chainId}. The toggle direction is determined automatically based on the current collateral state.

Execute toggle

Confirm the asset, toggle direction (enabling or disabling), and chain with the user. The value field must be 0x-prefixed hex.

mm wallet send-transaction --chain-id <CHAIN_ID> --payload '{"to":"<TO>","value":"0x0","data":"<DATA>"}' --wait --intent "Toggle <SYMBOL> as collateral on Aave V3 on <CHAIN_NAME>"

Notes

  • Enabling collateral lets the asset back borrows, increasing borrow capacity.
  • Disabling collateral removes it from the borrow calculation. This may trigger liquidation if remaining collateral can't cover existing debt.
  • Not all assets support collateral usage. If the transaction reverts, the reserve may not be eligible.
  • After the transaction confirms, verify the updated status using aave-positions.md.