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Aave

AAVE
DeFiRank #35Ethereum

$112.74

+1.07%24h
+2.39%7d

Market Cap

$1.71B

Volume 24h

$438.56M

Vol / Market Cap

25.62%

Rank

#35

AAVE Price Chart

About Aave

Aave is a decentralized lending protocol allowing users to borrow and lend crypto assets.

Aave is a decentralized lending protocol that allows users to borrow and lend crypto assets through smart contracts without intermediaries.

How It Works

A decentralized lending platform where users can deposit digital assets to earn interest or use them as collateral to borrow other tokens. It uses an algorithmic model to adjust interest rates based on real-time supply and demand.

Use Cases

Lending & Yield: Used for governance of the Aave protocol, where users can earn interest on their deposits or take out over-collateralized loans without a bank.

Tokenomics

Lending & Borrowing: A governance token that also allows users to participate in the "Safety Module." Used to vote on which assets can be borrowed/lent and to earn a portion of the protocol's interest and fees.

Risks & Considerations

Smart contract exploit risk; regulatory pressure on lending protocols regarding "uncollateralized" institutional loans.

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