What is Aave REN v1?

Aave REN v1 is an interest-bearing token that is minted when REN is deposited into the Aave protocol and burned upon redemption. It maintains a 1:1 peg to the value of the deposited REN, allowing for secure storage, transfer, and trade of the aREN token.

While the underlying REN is loaned to borrowers, the aREN token accrues interest in real time directly in the user's wallet. This mechanism provides a way for users to earn interest on their deposits while retaining the flexibility to manage their aREN holdings.