Aave is one of the biggest decentralized finance service providers that specializes in lending and borrowing services for both digital and real-world assets. Anyone can participate in the Aave protocol as a depositor or borrower by interacting with Aave's liquidity pools, eliminating the need for an intermediary.
Established in 2017 by Stani Kulechov, Aave has grown tremendously with two big updates: V2 in December 2020 and V3 in March 2022. The Aave protocol was originally released on Ethereum and is currently on multiple blockchains including Avalanche, Harmony, Polygon, etc. At the time of this writing, more than USD 8.3 billion is locked in the protocol across 7 networks and over 13 markets.
This is the basics of how Aave works: depositors give their funds to Aave's liquidity pools to earn interests, while borrowers can take out either an overcollateralized loan or an undercollateralized one.
Apart from these two fundamental features of Aave, the protocol also provides other services such as:
- Staking
- Swapping of deposited assets
- Flash loan (borrowing without any collaterals)
- Isolation Mode (allowing certain new assets to be used as collaterals in stablecoin-only loans with predetermined debt ceilings)
- Portal (allowing assets to move between different Aave markets)
etc.
AAVE is the native governance and utility token of the Aave protocol. People can use AAVE to receive discounted fees, borrow more, participate in governance, or stake to receive 6% APY.
Total supply of AAVE: 16,000,000
Circulating supply of AAVE: 14,093,192.58
Consider investing in Aave (AAVE)? It only takes 2 minutes to create an account on Bitget and start trading AAVE.
Check out the available AAVE trading pairs on Bitget!
Futures Market
Spot Market
Buy Aave in St Kitts & Nevis with Bitget