Aave is a popular project in the Defi industry, offering investors a way to borrow and lend their digital assets. But there’s much more to Aave that you should know. Keep reading to learn what this digital asset is all about.

What is Aave?

Source: https://aave.com/Guideline.pdf

Aave is a decentralized money market that allows users to lend and borrow crypto assets via smart contracts. It’s a vital component of the Defi industry, focused on establishing, opening, and transferring peer-to-peer lending.

Why is Aave better than traditional financial marketplaces? 

Aave allows users to lend and borrow crypto assets on a decentralized platform. Decentralization eliminates the issues plaguing existing centralized lending and borrowing solutions, such as high fees, difficulty verifying identity, and no transparency of the overall loan approval process.

Stani Kulechov, the creator of Aave, launched it as ETHlend in 2017. After its initial coin offering (ICO), ETHlend raised CAD $20.54 million and changed its name to Aave

Following the rebrand, the founder’s vision also pivoted, intending to solve the ETHLend problem. ETHlend matches lenders and borrowers in a peer-to-peer fashion instead of the lending pool contract process that Aave uses.

What is the Native Token of Aave?

The protocol has had its fair share of native tokens. Its first token was LEND, which was used when the project operated as ETHLend, The proceeds from ETHlLend were used to fund the development of the Aave platform, which has its token, AAVE. Currently, the protocol issues two types of tokens: 

A-token: A-tokens are issued to lenders to acquire interest for their deposits.

AAVE token: The Aave token powers the governance of the platform. Anyone who holds AAVE has the ability to vote on changes made to the network.


Source: https://aave.com/aavenomics

The Aavenomics of the project proposes a systematic route to the decentralization and autonomy of the Aave Protocol. Furthermore, it outlines a vision for alignment among various stakeholders in the Aave ecosystem, protocol capabilities, and the AAVE token as a fundamental securing element.

Aave’s tokenomics goal is to establish a shelling point where the protocol’s growth, sustainability, and safety take precedence over individual stakeholder aims. Aave token holders bear the risk attached to the protocol. Credible stakeholders act as backers by contributing more tangible ways to the protocol, usually through Defi, integrations, and finance. Thus, both token holders and stakeholders have significant roles in the protocol’s advancement, functionality, and behavior.

Why is it Appealing?

Being one of the top popular lending cryptocurrencies in the Defi space, Aave is often regarded as the “World Bank on the Blockchain.” But there’s more to Aave than just the thoughts of prominent crypto investors.

For example, the protocol has an active development team that updates the application regularly while delivering Aave roadmap updates in an efficient manner. As a result, Aavenomics guarantees long-term sustainability, despite facing short-term challenges.

Aave also uses authentic and credible stakeholders as backers. Stakeholders include Standard Crypto, Winklevoss Capital, Definance Capital, Blockchain Capital, Blockchain.com, DTC Capital, Three Arrows Capital, and Parafi Capital.

Is AAVE a better investment than Bitcoin? 

Despite being relatively new to the crypto industry, AAVE has an active development team that focuses on delivering its roadmap and updating the application rapidly, which is something Bitcoin lacks.

Additionally, the Aave protocol has an active community that is very responsive to criticisms, while Bitcoin is known for its censorship, negative feedback, and opinions. Furthermore, while Bitcoin lacks scalability issues – due to the increasing number of users on its platform – Aave’s Polygon scalability solution provides more room for growth.

How many AAVE Tokens are in Circulation?

Source: https://coinmarketcap.com/currencies/aave/

Based on information from Coinmarketcap, there are currently about 13.4 million Aave tokens in circulation with a finite supply of 16,000,000 coins. 

Aave has experienced a surge in value from CAD $81.3 to an all-time high of around CAD $443. Analysts and crypto enthusiasts predict prices to continue upward in the coming months. Click here to check out the current price of Aave. 

Which Wallets Support AAVE?

AAVE is an ERC-20 token, so you’ll have no shortage of wallets available to store your coins. If you plan on holding your tokens over the long term, you might consider using a hardware wallet like Trezor or Ledger. These wallets are physical devices that are known for their security and protection.

Conversely, if you want to put your AAVE to use through trading, you can use a desktop, mobile, or browser wallet. These wallets give you quick and easy access to your tokens whenever you need them. Also known as hot wallets, popular choices include Exodus, Atomic, and MetaMask.

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Where Can I Buy AAVE?

You can buy AAVE on Coinberry by signing up for an account here.

Additional Resources

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