Aave (AAVE)

The exchange rate of one AAVE at 13:36 UTC is 85.87$

Chart | Average rate

“AAVE” is one of the leading decentralized finance systems, while the native cryptocurrency of the same name is in the TOP-50 according to the CoinMarketCap platform with a market capitalization of about $4 billion. This platform allows all participants to take loans secured by the Ethereum cryptocurrency, which can also be invested at high interest to receive passive income.

The developers of AAVE were among the first to see the need to provide lending and investment services in the crypto industry, as a result of which this trading platform is now considered one of the largest in the field of DeFi finance.

In addition, AAVE is a money market where users can receive or issue a wide range of digital assets, including stablecoins and tokenized shares, with regulation of the protocol by native coin holders.

The project was originally called “ETHLend”, whose ICO took place in 2017, but due to the 2018 crypto market crisis, community interest was lost due to lack of liquidity, as most investors were forced to buy up traditional assets, including gold, stocks, etc. However, at the beginning of 2020, this platform appeared again under a different name “AAVE”, but the concept of the project remained the same.

At the same time, this platform does not limit its scope of activity to staking and lending only, since here any participants can receive flash loans. That is, AAVE pools usually have more liquidity than the borrower needs, as a result of which it is possible to take without collateral loans that exist during the processing of one block of Ethereum, which can be very effectively used for intraday trading.

At the same time, the main problem of the AAVE system is the excessive provision of credit funds by the borrower, in contrast to traditional financial systems, which require full verification and confirmation of a positive credit history before issuing loans. However, AAVE users can conduct anonymous financial transactions, which for many people is one of the decisive factors when choosing a lender.

In conclusion, it is worth noting that systems like AAVE are paving the way for a more open and multifunctional financial system, gradually replacing the traditional banking sector of the economy.