Aave is a DeFi (decentralized finance) protocol designed as an open-source, decentralized money market or lending system. With Aave, you can lend, borrow, and earn interest on 17 different cryptocurrencies without any intervention from a middleman or third party.
In November 2017, Stani Kulechov, the founder, launched Aave under the name ‘ETHLend’. By September of the following year (2018), it was rebranded as Aave, a Finnish word meaning ‘ghost’. The rebranding emphasized the protocol’s goal to become an open and transparent infrastructure in DeFi.
The Aave network is becoming more self-governed by launching Aave (AAVE) native token with 1:100 migration allowed from LEND to Aave (Oct 2020) and Aave V2 (Dec 2020) with new features.
Aave runs on the Ethereum blockchain and gives you exposure to a broad range of currencies to borrow and lend. As a lender, you can earn passive income on your crypto assets in a secure manner. As a borrower, you can even avail loans on the Aave protocol by posting collateral.
However, when returning the loaned crypto assets, you need to complete the transaction in a single block. For instance, if you have taken a loan of 5 ETHs through the Aave protocol, you need to repay it all in a single transaction. You can’t pay it in installments.
If you want to use various cryptocurrencies without actually buying them by borrowing or want to earn income through lending, then the Aave cryptocurrency is the best option for you.
Aave is a crypto lending ecosystem. When you request a loan, you have to post collateral of your crypto assets, against which you are issued a different cryptocurrency. Marked with Aave tokens, you can use each transaction to borrow or lend. When you lend your crypto assets to another party, your Aave token indicates the amount loaned, and you earn the lending interest accordingly. Aave offers a comparatively higher lending percentage of crypto (>75%) against collateral.
CoinSwitch offers unmatched advantages for Aave coin trading:
The Initial Coin Offering or ICO of Aave successfully raised $16.2 million in 2017, while it was still known as ETHLend. As of 2021, Aave has over $5 billion on its books. The Aave ecosystem includes several partnerships and collaborations for Aave Lending, Aave Clearing, Aave Custody, Aave Pocket, and Aave Gaming.
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Disclaimer : Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. The information provided in this post is not to be considered as investment/financial advice from CoinSwitch. Any action taken upon the information shall be at user's own risk.
With Aave, you can lend, borrow, and earn interest on 17 different cryptocurrencies without any intervention from a middleman or third party.
1 Cr. AAVE
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