AAVE is simply a (crypto) peer-to-peer lending and borrowing platform that anonymously connects lenders and borrowers.
👉 AAVE website.
👉 AAVE twitter.
👉 AAVE token.
👉 AAVE Founder
👉 AAVE Docs
✅ Active community
✅ Active team
✅ Billions $$ of liquidity
✅ Decentralized, DAO.
Why Lend My Crypto? 🤔
- Earn passive interest on autopilot.
- Make your crypto holdings earn you money, instead of collecting dust.
- Use your deposits as collateral to borrow against them, permissionless-ly.
Why Borrow Crypto? 🤔
- Use your crypto holdings to leverage more buying power.
- Your collateral earns interest while you borrow other crypto!
- Lock-in low borrowing APR rates.
How Does It Work?
- Each asset has 2 sides: borrowers and lenders.
- Lenders deposit the asset into one big pool.
- Borrowers can take loans from this pool.
- Borrowers are OVER-collateralized, so they can't run off with money.
- Interest rates on deposits are determined by borrow demand.
- AAVE connects lenders and borrowers, anonymously.
What Is The AAVE Token Used For?
- Voting power in the AAVE governance.
- Staking it for ~6% APY in the safety module
- The safety module used to cover lost funds via explots, bugs...
- Can be used as collateral on AAVE, to borrow against.
What Are The Risks Of Using AAVE?
- Bugs, exploits are always possible. (safety module can cover lost funds)
- Liquidation of your collateral can happen if you take riskier loans and don't actively manage your loans.
Stand Out Features?
- Stable borrowing + Variable rate borrowing!
- Repay debt with collateral.
- Swap between collateral.
- ability to borrow / lend LP tokens. (Liquidity provider positions)
- Use staked SUSHI tokens (XSUSHI) as collateral.