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Aaveator 5C2C49BE-0B07-4C3F-8D36-B1FB2C7ACC0C Created with sketchtool. 138 Stranger 3 Mar 20 2023 9:51

Is there a risk of losing AAVE when staking it?

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I am new to the AAVE and I don't hold a lot of it. I am interested in staking my AAVE crypto, but I have read that there is a chance of losing it. Is this true? Unlike staking with a non-custodial wallet where your funds are safe while staking, is there a risk of losing AAVE when staking it?

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undefined 5C2C49BE-0B07-4C3F-8D36-B1FB2C7ACC0C Created with sketchtool. 0 Stranger 0 Mar 22 2023 12:08

Well, first of all welcome to Aave forum! Ok so to answer your question properly, by staking your aave you receive stkaave wich is a syntetic version of your aave staked in the contract. By doing that you get an interest, and also helps securing the protocol. But, in case of a shortfall event, and always decided by governance, it may be possible to slash a % of your stkaave to help reduce the damage from a potential slashing event.