Aave

What is Aave?

Aave is a decentralized, non-custodial liquidity protocol built on multiple networks, including Ethereum, where users can supply and borrow crypto assets. Suppliers provide liquidity to the market while earning interest, and borrowers can access liquidity by providing collateral exceeding the borrowed amount. AAVE token holders govern the protocol, deciding on asset listings and protocol development, and can stake their tokens within the Safety Module to provide a backstop against shortfall events, earning incentives in the process.

Benefits of using Aave

Using Aave, blockchain users can earn passive income by supplying their assets to the protocol, gaining interest while maintaining control over their funds. Borrowers benefit from flexible and permissionless access to liquidity, including innovative features like flash loans, which enable instant, uncollateralized borrowing for advanced use cases. Additionally, AAVE token holders can participate in governance and stake their tokens to earn rewards while contributing to the protocol’s security and resilience.