# Aave Switch: Portfolio Optimization

By [Lynn Brooke](https://paragraph.com/@lynnbrooke) · 2024-03-27

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[Aave](https://app.aave.com/)’s platform not only facilitates lending and borrowing digital assets but also introduces a versatile feature: the **SWITCH** option for both supplied and borrowed assets. This functionality shines when adjusting strategies in response to **changing APYs or seeking more favorable** **lending and borrowing conditions**.

If you want to know more about supplying and borrowing on Aave, read my article “[Aave simplified: Supply, Borrow and Grow](https://mirror.xyz/lynnbrooke.eth/5BQrhTdfBSRjkB4iW5j2b8CS4Y7LlUm-D1pbaONKReM)”.

**What you will find in this article:**

![](https://storage.googleapis.com/papyrus_images/4198082883ea28bebaae8f82e07debc181d11f6e3709268a3b20dc1318424995.jpg)

**SWITCHING SUPPLIED ASSETS**

If the APY on your supplied asset diminishes or you spot another asset with a higher return potential, here’s how to switch:

1)Navigate to “_Supply_” from the Dashboard on Aave’s main page.

![](https://storage.googleapis.com/papyrus_images/fec86e8dff76edbbb2b1adbc71765e34b38f6e401499cd79f656540cac95729b.png)

2)Click on the “_Switch_” button.

3)Determine the amount of the supplied asset you want to switch. You can opt for any amount up to the total supplied.

4)Select the asset you want to switch to in the “_Switch to_” field.

5)The “_Transaction overview_” provides essential information such as changes in the Health Factor, Supply APY and Liquidation Threshold. It’s crucial to monitor these metrics closely to avoid liquidation.

![NOTE: be aware of the potential change in the value of your supplying amount in USD due to price impact.](https://storage.googleapis.com/papyrus_images/eded7c996d83c4f558ec0f5e775b9f9ed3acf2446c688a6699120c46a30e7547.png)

NOTE: be aware of the potential change in the value of your supplying amount in USD due to price impact.

6)Adjust slippage, approve the transaction and complete the switch.

![](https://storage.googleapis.com/papyrus_images/d3f2910ce0ea218210c262649a28fdd300aa96e030bba6d6217a9ef5fde52c6d.png)

Alternatively, withdrawing the total supplied amount, swapping the tokens, and initiating a new supply in the desired asset in an option. However, Aave’s **SWITCH** simplifies the process significantly.

**SWITCHING BORROWED ASSETS**

Similarly, should you encounter a borrowable asset with a lover debt APY, switching can optimize your debt conditions:

1)From the Dashboard, select “_Borrow_”.

![](https://storage.googleapis.com/papyrus_images/6de09c6a6db85c9819bbdb8037faa2777a951746a6888a738ab3fb1b172e3742.png)

2)Click the “_Switch_” button.

3)Choose how much of the borrowable asset you wish to switch. The maximum is the total borrowed amount.

4)In the “_Switch to_” section, pick the new asset for your debt.

5)Aave provides details on changes in Borrow APY and the Borrow balance post-switch in the _Transaction Overview_.

![NOTE: again, the Price Impact may affect the value of your borrowed amount (USD).](https://storage.googleapis.com/papyrus_images/d80028b034a1c8819c338dc56aa8835a1d3d46052667ff22a9a97c5c2b6718dd.png)

NOTE: again, the Price Impact may affect the value of your borrowed amount (USD).

6)Adjust the slippage tolerance, approve and proceed with the switch.

![NOTE: switching actions can incur higher transaction fees than standard operations.](https://storage.googleapis.com/papyrus_images/ca2451d7e2592d805341b1aee0f4d3673aefd68ef8bc30fd19282a4ba9238543.png)

NOTE: switching actions can incur higher transaction fees than standard operations.

The **SWITCH** feature on Aave offers flexibility in managing your digital assets, allowing you to adapt to market dynamics efficently. Wheter optimizing returns on supplied assets or minimizing costs on borrowed ones, **SWITCH** provides a streamlined approach to adjusting your portfolio on the fly.

_Lynn Brooke_

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_This article serves educational purposes and is not financial advice. We encourage you to do your own research and be responsible for your actions in the financial space._

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*Originally published on [Lynn Brooke](https://paragraph.com/@lynnbrooke/aave-switch-portfolio-optimization)*