Aave ETH

Aave ETH (AETH) is primarily used as a mechanism for earning interest on supplied assets in the Aave market. The balance of aTokens represents the user's principal balance plus the yield generated by that balance. The state and cumulated liquidity index of the reserve are updated every block, allowing aToken's balance to reflect the most up-to-date account balance, which includes the principal plus interest.

Furthermore, aTokens can be transferred, and by doing so, the balance of the underlying asset is transferred. However, it is important to note that only the account holding the aTokens can withdraw the deposited asset. If aToken is transferred, the liquidity rewards earned prior to the transfer stay with the original holder, while all future liquidity rewards are earned by the new recipient​.