DeFi 10108 September 2021

What is Aave (AAVE)?

AAVE DeFi System

Summary

  • Aave is a DeFi lending system
  • Aave is built on the Ethereum blockchain
  • Aave software supports the creation of lending pools
  • Borrowers receive funds in the form of aToken

Aave is a decentralized finance lending system where cryptocurrency users can borrow, lend and earn interest against their digital assets without involving middlemen. It is a smart contracts system on the Ethereum blockchain that allows digital assets management on a distributed computer network using the Aave software.

This makes Aave fully decentralized, and users do not have to entrust their funds to third-party organizations. Aave software supports creating cryptocurrency lending pools where users can borrow or lend up to 17 different types of cryptocurrencies, including MANA, ETH, and BAT.

Borrowers are required to have collateral to receive funds in the form of aToken, a unique token pegged on the value of an asset.

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