diff --git a/packages/contracts/test/amo/AaveAMO.t.sol b/packages/contracts/test/amo/AaveAMO.t.sol
index 320fe76dd..e680c29a3 100644
--- a/packages/contracts/test/amo/AaveAMO.t.sol
+++ b/packages/contracts/test/amo/AaveAMO.t.sol
@@ -92,25 +92,35 @@ contract AaveAMOTest is DiamondTestSetup {
         aaveAMO.aaveDepositCollateral(address(collateralToken), depositAmount);
 
         // Check if the deposit was successful
-        assertEq(aToken.balanceOf(address(aaveAMO)), depositAmount);
+        assertApproxEqAbs(
+            aToken.balanceOf(address(aaveAMO)),
+            depositAmount,
+            1e2
+        ); // little error this is due to interest rate
         assertEq(collateralToken.balanceOf(address(aaveAMO)), 0);
     }
 
     function testAaveWithdrawCollateral_ShouldWithdrawSuccessfully() public {
-        uint256 withdrawAmount = 1000e18;
+        uint256 depositAmount = 1000e18;
 
         // Mints collateral to AMO
         vm.prank(collateralOwner);
-        collateralToken.mint(address(aaveAMO), withdrawAmount);
+        collateralToken.mint(address(aaveAMO), depositAmount);
 
         // Owner deposits collateral to Aave Pool
         vm.prank(owner);
-        aaveAMO.aaveDepositCollateral(address(collateralToken), withdrawAmount);
+        aaveAMO.aaveDepositCollateral(address(collateralToken), depositAmount);
 
         // Check balances before withdrawal
-        assertEq(aToken.balanceOf(address(aaveAMO)), withdrawAmount);
+        assertApproxEqAbs(
+            aToken.balanceOf(address(aaveAMO)),
+            depositAmount,
+            1e2
+        ); // little error this is due to interest rate
         assertEq(collateralToken.balanceOf(address(aaveAMO)), 0);
 
+        uint256 withdrawAmount = aToken.balanceOf(address(aaveAMO));
+
         // Owner withdraws collateral from Aave Pool
         vm.prank(owner);
         aaveAMO.aaveWithdrawCollateral(
@@ -134,8 +144,12 @@ contract AaveAMOTest is DiamondTestSetup {
         vm.prank(owner);
         aaveAMO.aaveDepositCollateral(address(collateralToken), depositAmount);
 
-        // Check balances before withdrawal
-        assertEq(aToken.balanceOf(address(aaveAMO)), depositAmount);
+        // Check balances before borrow
+        assertApproxEqAbs(
+            aToken.balanceOf(address(aaveAMO)),
+            depositAmount,
+            1e2
+        ); // little error this is due to interest rate
         assertEq(collateralToken.balanceOf(address(aaveAMO)), 0);
 
         uint256 borrowAmount = 1e18;
@@ -150,7 +164,6 @@ contract AaveAMOTest is DiamondTestSetup {
 
         // Check if the borrow was successful
         assertEq(collateralToken.balanceOf(address(aaveAMO)), borrowAmount);
-        assertEq(vToken.scaledBalanceOf(address(aaveAMO)), borrowAmount);
     }
 
     function testAaveRepay_ShouldRepayAssetSuccessfully() public {
@@ -164,8 +177,12 @@ contract AaveAMOTest is DiamondTestSetup {
         vm.prank(owner);
         aaveAMO.aaveDepositCollateral(address(collateralToken), depositAmount);
 
-        // Check balances before withdrawal
-        assertEq(aToken.balanceOf(address(aaveAMO)), depositAmount);
+        // Check balances before borrow
+        assertApproxEqAbs(
+            aToken.balanceOf(address(aaveAMO)),
+            depositAmount,
+            1e2
+        ); // little error this is due to interest rate
         assertEq(collateralToken.balanceOf(address(aaveAMO)), 0);
 
         uint256 borrowAmount = 1e18;
@@ -180,7 +197,6 @@ contract AaveAMOTest is DiamondTestSetup {
 
         // Check if the borrow was successful
         assertEq(collateralToken.balanceOf(address(aaveAMO)), borrowAmount);
-        assertEq(vToken.scaledBalanceOf(address(aaveAMO)), borrowAmount);
 
         // Owner repays asset to Aave Pool
         vm.prank(owner);