8 years in the making, and this platform has become a staple in the world of DeFi, locked in as the #1 protocol by TVL and the 35th largest crypto by market cap.
Welcome to Aave, anon.
Join us as we take a deep dive!
What is Aave?
Aave is the leading lending and borrowing protocol that first launched on the Ethereum network in 2017, when the protocol was first known as ETHLend. Despite a rebranding in 2018, they have had the same mission since the beginning: onboard global finance to the blockchain.
How Does Aave Work?
In a nutshell, Aave is a hub of lending pools that allows users to lend their cryptocurrencies to earn interest and/or borrow against their collateral. Available on many networks, Aave is multi-chain compatible and hosts the largest EVM networks, including Ethereum, Avalanche, Base, the BNB Chain, Linea and seven others.
The infamous lending and borrowing protocol is home to the largest and most popular cryptos, including $ETH, $USDC, $wBTC, $wstETH, $ezETH, $LINK, $AAVE and many others. Whether you’re looking to earn yield on your idle assets or looking to borrow more, Aave is the hub for you.
Statistics
Ranking as the leading DeFi protocol by total value locked (TVL), according to DeFi Llama, Aave currently has a TVL of over $22.24B split up and spanning across each compatible network. Not only trusted by millions of users, but Aave is also used by notorious companies such as JP Morgan, Consensys, Centrifuge and countless others.
Staking
Available and exclusive to the Ethereum network, users can stake $AAVE, $GHO or $ABPT V2, which is a pool of assets. Each token provides a different APR, but each staked asset helps to support the security of the protocol, therefore providing them with rewards in return.
Aave Tokens
$AAVE and $GHO are the two native tokens of the Aave ecosystem. Firstly, $AAVE is the governance token which can be staked, lent, and used to vote on governance proposals. $AAVE also provides users with discounted fees on the platform.
On the other hand, $GHO is a native-built, overcollateralized stablecoin pegged to the U.S. dollar and is backed by a pool of collateral assets on Aave that have greater value than the $GHO in circulation. $GHO is minted by supplying collateral in Aave, enabling users to earn interest on the collateral!
Conclusion
According to CoinMarketCap, at the time of writing, $AAVE is currently up 60.78% in the last month and trading at $207.65, ranking it the 35th largest crypto by market cap. In the previous bull run of 2021, $AAVE achieved an ATH of $666.86, in a time when there weren’t as many networks or users. With the expansion of Aave’s network compatibility and the increase in TVL, $AAVE could be poised for a mega run in the coming bull run!
Official Aave Links
Disclaimer
The content provided in this article is purely informational and nothing said is financial advice. Proceed with caution and always invest what you are prepared to lose. Remember that you are entirely responsible for your assets and investments and the author and the publication do not endorse any of the cryptocurrencies, protocols and/or strategies in this article.
