It is the utility token of the AAVE platform on the Ethereum blockchain. The ERC-20 token was identified as ETHLend in 2017 during its launch but rebranded to its current name in September 2018. The token is popular as it facilitates the lending and borrowing of digital assets and cryptocurrencies. It is the primary token of its Protocol governance, and holders vote and influence the outcome of the Aave Improvement Proposals(AIPs). It also provides stakers rewards and fees from the protocol. The AAVE token is deflationary to means that in a deficiency in the protocol, the staked token serves as collateral of last resort.
A Bit About Aave
Stani Kulechov launched the ETHLend token in 2017 after raising an Initial Coin Offering(ICO) of $16.2 Million. It served on a decentralised peer-to-peer lending platform. AAVE was later rebranded in 2018 to its current name. It coincided with switching to a liquidity pool model. AAVE started serving the Aave Protocol in 2020 after the protocol launch. It facilitates earning of interest from deposits and borrowing of digital assets and cryptocurrencies. The platform is amongst the leading decentralised finance protocols. It has caused its native token to be among the largest DeFi coin by market capitalisation. Investors of Ethereum often borrow and lend their cryptocurrencies through the token. They enjoy its decentralised nature.
Earn interest, borrow assets, and build applications with Aave.CryptoLists.com
The AAVE token facilitates the lending and borrowing of digital assets and crypto in the DeFi platform. It uses a smart contract as there are no third parties. There are over 30 cryptocurrencies, including the native token of the Ethereum blockchain, Ether. Depositors input funds available for lending into the liquidity pool. The borrowers have access to these funds issued as loans without credit approval. Two tokens ease this activity on the platform. These are the aTokens and the AAVE token. Lenders are rewarded aTokens as interest on their deposits, while an AAVE tokens serves as the native token of the platform. AAVE offers its holders a unique advantage in lending and borrowing. Borrowers of AAVE benefit by avoiding a charge when taking a loan in its denomination. Besides, borrowers using the token as collateral earn discounts on fees. They can also borrow a higher amount. Holders of the token access loans before their release to the public. This is once they pay a charge in its denomination. Also, it serves as a governance token. Holders of AAVE have voting rights on decisions affecting the DeFi protocol.
Utility of Aave?
Holders of the native token serve as a fallback for the DeFi protocol. The safety module of the protocol protects the DeFi when there is a deficiency. When there are limited funds in the protocol to cover the lenders' funds, the tokens in the safety module are sold to cover the shortage. The tokens in the module are the only ones liquidated to cover the deficit. The platform incentivised deposits into the module with consistent yield in the denomination of the token.
Additionally, the token acts as a governance token for the protocol. Its holders benefit by having voting rights on the AIPs. It requires the acceptance of the least number of tokens to implement a decision. The vote to token ratio is 1:1. The key decisions involved in the protocol include altering the parameters of its money market. It also touches on managing the reserve funds.
The backstop role of the token ensures that there is mitigation against black swan events. It further decentralises the DeFi protocol.
Aave Price detailsERC20 Contract address: 0x7fc66500c84a76ad7e9c93437bfc5ac33e2ddae9
›› Details & Tokenomics
Advantages of Aave+ It facilitates lending and borrowing of crypto without a third party.
+ AAVE prevents the protocol from experiencing a deficit of funds.
+ It facilitates access to a variety of cryptocurrency on its DeFi platf
+ Aave gives voting rights on the outcome of AIPs on the platform.
+ It facilitates flash loans that need no collateral.
Disadvantages- The coin facilitates over collateralised loans which showcase it as ca
- The loans issued via the coin have low-interest rates
- AAVE experiences strong competition from DeFis with higher yield.
- The Ethereum gas fees can be high for users of AAVE.
- It is susceptible to hackers through flash loans as in the past.
Costs▪ Rated at 10/10
There is a 0.01% charge as borrowing fees with the AAVE token. Users also incur a 0.09% charge when accessing a flash loan on the platform. It is essential to note that there are no deposit fees for the coin. The withdrawal fee of the coin is dependent on the exchange.
Reputation and Buzz▪ Reputation rated at 9/10
▪ Buzz rated at 9/10
Online forums praise the token's utility in facilitating the lending and borrowing of cryptocurrencies. It gives access to several cryptocurrencies. Borrowers have praised the rate switching option between stable and variable rates. It is the most promising crypto currently with increasing interest. The flash loan is beneficial to its users as they do not require collateral. Yet, some users are wary of the risk it exposes to hackers. Others also argue that over collateralised loans show that there is capital inefficiency. Besides, the loans are at low interest which discourages several potential investors.
How much earnings are with the coin deposits?
Depositors earn interest paid from borrowers. This is consistent with the average borrow rate multiplied by the utilisation rate. The higher the utilisation rate, the higher the earnings. Additionally, depositors receive 0.09% of the flash loan volume.
Is there risk in depositing the coin?
The platform considers itself risk-free. The only risks are smart contract risks and liquidity risks. The protocol code risk is mitigated by having it audited, public and open source.
Does the coin's platform have a mobile app?
Currently, there is no mobile app for the DeFi platform.
Where to buy the native token?
The coin is amongst the most promising cryptocurrencies. It is available from the top exchanges in the crypto industry. These include:
Screenshots from Aave
More sites where to buy/sell/trade AaveBelow you can see some other platforms, exchanges and/or brokers where you can buy, sell or trade this token. Click on the logo to read our review.
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Aave details and tokenomics
MATIC Contract address: 0xd6df932a45c0f255f85145f286ea0b292b21c90b
FTM Contract address: 0x6a07a792ab2965c72a5b8088d3a069a7ac3a993b