It is as the other commenter said, returns come from other people borrowing collateral and paying interest on it. It may also interest you to know that AAVE wa

It is as the other commenter said, returns come from other people borrowing collateral and paying interest on it. It may also interest you to know that AAVE was granted an Electronic Money Institution license by the U.K. Financial Conduct Authority (https://register.fca.org.uk/s/firm?id=0010X00004U9vVAQAZ https://register.fca.org.uk/s/firm?id=0010X00004U9vVAQAZ).