What Is Aave (AAVE)?
Aave is a decentralized finance protocol that allows people to lend and borrow crypto. Lenders earn interest by depositing digital assets into specially created liquidity pools. Borrowers can then use their crypto as collateral to take out a flash loan using this liquidity.
Aave Coin (which means “ghost” in Finnish) was originally known as ETHLend when it launched in November 2017, but the rebranding to The happened in September 2018. (This helps explain why this token’s ticker is so different from its name!)
AAVE provides holders with discounted fees on the platform, and it also serves as a governance token — giving owners a say in the future development of the protocol.
| Coin Basic | Information |
|---|---|
| Coin Name | Aave Coin |
| Short Name | AAVE |
| Circulating Supply | 13,489,829.92 AAVE |
| Total Supply | 16,000,000 |
| Source Code | Click Here To View Source Code |
| Explorers | Click Here To View Explorers |
| Twitter Page | Click Here To Visit Twitter Group |
| Whitepaper | Click Here To View |
| Support | 24/7 |
| Official Project Website | Click Here To Visit Project Website |
Flexible Price
The live Aave price today is $149.59 USD with a 24-hour trading volume of $172,444,095 USD. They update AAVE to USD price in real-time. This is up 1.23% in the last 24 hours. The current CoinMarketCap ranking is #50, with a live market cap of $2,017,920,543 USD. It has a circulating supply of 13,489,830 AAVE coins and a max. supply of 16,000,000 AAVE coins.
Who Are the Founders of Aave?
Aave, and its predecessor ETHLend, were founded by Stani Kulechov. At the time, he was frustrated at the lack of lending applications on Ethereum — and his project was built before decentralized finance even existed.
Kulechov is a serial entrepreneur who went to law school and began programming when he was a teenager. He was an early adopter in the blockchain space. The CEO has said that he wanted to rebrand ETHLend as so the company could offer a wider range of services beyond Ether lending.
According to Kulechov, Aave’s main target market are people who are already engaged in the cryptocurrency community.
What Makes Aave Unique?
Aave has several unique selling points when compared with competitors in an increasingly crowded market. During the DeFi craze in the summer of 2020, it was one of the biggest projects in terms of the total value of crypto locked in its protocol.
The project allows people to borrow and lend in about 20 cryptocurrencies, meaning that users have a greater amount of choice. One of Aave Coin flagship products are “flash loans,” which have been billed as the first uncollateralized loan option in the DeFi space. There’s a catch: they must be paid back within the same transaction.
Another big selling point is how those who borrow through Aave can alternate between fixed and variable interest rates. While fixed rates can provide some certainty about costs during times of volatility in the crypto markets, variable rates can come in handy if the borrower thinks that prices will fall in the near future.
How Is the Aave Network Secured?
The open-source protocol is built on Ethereum, a blockchain that is currently making the transition from Proof-of-Work to Proof-of-Stake.
Where Can You Buy Aave (AAVE)?
Some of the biggest exchanges that list AAVE tokens include CoinDCX, Binance, CoinBene and OKEx. You can find out more about how to convert fiat into crypto here.
aTokens
Aave interest bearing tokens (aTokens for short) are minted upon deposit and burned when redeemed. The aTokens are pegged 1:1 to the value of the underlying asset that is deposited in Aave protocol. ATokens, such as aDai, can be freely stored, transferred, and traded.
While the underlying asset is loaned out to borrowers, ATokens accrue interest in real time, directly in your wallet! Seriously, you can watch your balance grow every minute.
One to one ratio
ATokens are pegged 1:1 to the value of the underlying asset that is deposited in Aave protocol.
Redirect the interest
The interest earned on aTokens can be redirected at any time to any Ethereum public address.
Stablecoins
Earn interest on stablecoins like aDai, aUSDC, and aUSDT.
Security
At the Aave Companies, security is top priority as they build protocols; this is top of mind as they innovate new software. Cryptoassets supplied to the Protocol are stored on a non-custodial smart contract on the Ethereum blockchain. You control your wallet. Regulated and auditable by code.
Aave Coin Protocol has had audits by Trail of Bits, Open Zeppelin, Consensys Diligence, CertiK, PeckShield, Certora and SigmaPrime. All audits are publicly available, and you can find them below.
Bug bounty
There is a Bug Bounty program for V2 of the Aave Protocol, in which community members can report what they believe may be bugs or vulnerabilities. Valid reports may be rewarded up to $250,000 (only for critical bugs). More information on the bounty criteria and application process is available on the Bug Bounty page.
Admin keys
Ownership of the Aave Coin Protocol belongs to The Governance, the group of AAVE tokenholders. Protocol upgrades or changes are decided by votes on Improvement Proposals (AIPs). Feel free to join the community governance discussion.
Oracles
Aave Protocol is integrated with Chainlink to power the oracle network, which provides live price feeds for 68 crypto assets. The Chainlink oracles reflect real time conditions on and off chain in the prices on the Protocol. Decentralization is the foundation of Protocol, and Chainlink guarantees a decentralized oracle service that cannot be exploited at a single point
