In Aave, a collateral supplier can authorize another address to draw debt against the supplier's position. The permission is recorded through the relevant debt token's delegation mechanism. It does not create collateral out of nothing or remove the protocol's solvency checks. The delegator's position supplies the borrowing capacity, while the authorized borrower can receive the borrowed assets. Debt and collateral accounting remain essential to understanding who can lose money.

Suppose Alice deposits collateral and authorizes Bob to borrow up to a specified amount. Bob can receive funds while Alice's position carries the associated debt exposure. If collateral prices fall or interest accumulates, that position can approach liquidation. A separate agreement might require Bob to repay Alice, but an agreement outside the protocol is not automatically enforced by the lending pool. Delegation therefore combines on-chain authorization with a potentially separate credit relationship.

Check the exact debt token, permitted borrower, borrowing allowance, collateral configuration, and health factor. Revoking unused borrowing permission does not erase debt already created, and additional collateral does not ensure a borrower will voluntarily repay. Interfaces sometimes request credit delegation as part of a convenience operation such as borrowing and unwrapping a native asset; that should not be confused with granting an unknown person an open credit line. The economic effect depends on the precise transaction being signed.