What is Aave (AAVE)?

Website: https://aave.com/

Maximum Supply: 16,000,000 AAVE

Circulating Supply: 12,488,046 AAVE

Total Supply: 16,000,000 AAVE

Explorer: Aave Explorer

Whitepaper: Aave Whitepaper

What is Aave (AAVE)?

Aave is described as a decentralized finance protocol that allows people to lend and borrow crypto. Lenders earn interest by investing digital assets in specially created liquidity pools. Borrowers can then use their crypto as collateral to get a loan using this liquidity. Aave (which means “ghost” in Finnish) was originally known as ETHLend when it was launched in November 2017, but the rebranding to aave occurred in September 2018. AAVE provides its holders with discounted fees on the platform and also serves as a management token, giving holders a say in the future development of the protocol.

Who are the founders of Aave?

Aave and its predecessor ETHLend were founded by Stani Kulechov. At that time, it was disappointed by the lack of lending practices in Ethereum, and its project was created before decentralized finance existed. Kulichov is known as a serial entrepreneur who went to law school and started programming when he was young. He himself was one of the pioneers in the blockchain space. The CEO stated that he wants to rebrand Ethlend as Aave, so that the company can offer a wider range of services beyond ether loans. According to Kulechov, Aave's main target market is people who are already engaged in the cryptocurrency community.

What Makes Aave Unique?

Compared to competitors in an increasingly crowded market, Aave has several unique selling points. During the DeFi craze in the summer of 2020, it is known as one of the largest projects in terms of the total value of the crypto locked in its protocol. The project allows users to borrow about 20 people in cryptocurrencies and borrow a larger amount of option. One of Aave's flagship products is known as "flash loans", which are billed as the first uncollectible loan option in the Defi field. Another feature that needs to be repaid within the same transaction is also related to how borrowers through Aave can change between fixed and floating interest rates. While fixed rates can provide some certainty about costs in times of volatility in the crypto markets, floating rates can come in handy if the borrower thinks prices will drop in the near future.