Aave operates as a decentralised, non-custodial liquidity protocol that allows participants to act as either suppliers or borrowers. Suppliers contribute liquidity to the market and earn interest in return, whereas borrowers obtain liquidity by posting collateral worth more than the amount they borrow.

aEthUSDT is an aToken within the Aave system. It functions as a yield-bearing asset issued to users who deposit USDT (Tether) into the Aave V3 network on Ethereum.