What is Aave MKR v1?

Aave MKR is an interest-bearing token created when a user deposits MKR into the Aave protocol. It is designed to maintain a 1:1 peg to the value of the deposited MKR and can be stored, transferred, or traded freely.

While the underlying MKR is lent to borrowers, aMKR accumulates interest in real time, which is reflected directly in the owner's wallet. The mechanics of this token enable users to earn interest on their assets while retaining the ability to trade or utilize the aMKR.