What is Aave?
Aave is a lending and borrowing project that allows users to borrow or lend tokens. Simply put, Aave has Pools for users to deposit assets to lend, or withdraw tokens in those Pools to borrow.
Lenders provide liquidity to the market to earn passive income while borrowers can borrow money over-collateral, which means depositing $100 worth of collateral, borrowing only <$100.
Highlights of Aave
Originally, the project was named Ethlendbut changed its name to Aave (the ghost, meaning that it is impossible to know who the borrower or the lender is) to solve the problem of loan liquidity, as well as a way to connect borrowers and borrowers, by how to use the above algorithm Smart Contract.
In addition, here are Aave’s featured products:
Flash Loans
Aave allows unsecured loans by creating logics that if the loan is not repaid within block time, the transaction will be reversed.
Flash Loans Designed for use by developers to build arbitrage, refinance, or liquidation funding tools.
Eg: If a user wants to take out a Maker loan but the falling collateral price is at risk of being liquidated, then the user can use a flash loan to pay back that Maker loan and get the collateral back. They can then sell the collateral and return the flash loan to avoid Maker liquidation without adding new capital.
Rate switching
Another unique feature of Aave is that it allows borrowers (borrowers) to convert either fixed or variable interest rates. Typically, DeFi rates are quite volatile, making it difficult to estimate long-term borrowing costs.
If a user predicts interest rates will increase, they can convert the loan to a fixed rate form to lock in future borrowing costs.
If users think interest rates are falling, they can convert back to volatile rates to reduce borrowing costs.
There are two exceptions where the fixed rate can change:
- Case 1: If the lending rate rises above the fixed loan rate, the system may become unstable because it has to pay more than the interest it needs to pay. In this case, the fixed rate will be rebalanced to achieve the new stable rate.
- Case 2: In favor of borrowers, if the volatility rate is lower than the 20% fixed rate, the loan will automatically decrease to cover the difference.
Benefits of holding AAVE token
AAVE is a token of the Aave protocol, used for the following purposes:
- Governance: Propose, vote or decide on new features, new assets and decide on the parameters of the protocol.
- Priority benefits: AAVE borrowers are not charged a fee if they take out a token loan, use AAVE as collateral for a reduced fee, or borrow more than usual.
- Use to pay fees: AAVE owners can pay fees with AAVE tokens to get a closer look at loans before they are publicly announced.
- Burn: AAVE tokens will be burned based on the fees collected by the Aave protocol.
Project team, investors & partners
Project team
The project founder is Stani Kulechov, a pretty famous character in Crypto. Stani is a seasoned entrepreneur with extensive technology development experience in the crypto, blockchain and fintech space.
Stani is also an advisor to many founders and advisors of ICOs and blockchain projects and has spoken at numerous FinTech, Blockchain and Cryptocurrency events,…
Investors
Outstanding investors of AAVE: Three arrows Capital, ParaFi, Defiance Capital, Carnaby Capital, Matrix CIB, SVK crypto, YouBi Capital.
Partner
Aave’s partners are projects that allow borrowing tokens on Aave, such as Fei, Frax, Balancer,…
Roadmap & Updates
Aave V2
At the end of 2020, Aave will launch V2 version with many outstanding features, you can read more here.
Aave V3
In March 2022, Aave detailed the V3 update:
- Portals feature: Facilitating Cross-chain transactions.
- High Efficiency Mode: User will have higher Borrowing Power with the same property.
- Isolation Mode: List other properties but still protect the protocol.
- Optimize gas usage.
- Along with that are some unique features for Layer-2.
Token information AAVE
Key metrics:
- Token Name: Aave
- Ticker: AAVE
- Blockchain: Ethereum
- Token Standard: ERC-20
- Contract: 0x7fc66500c84a76ad7e9c93437bfc5ac33e2ddae9
- Token type: Governance, Utility
- Total Supply: 16,000,000 AAVE
- Circulating Supply: 13,656,056 AAVE
AAVE Token Allocation
In 16M AAVE, there will be 13M used to convert from LEND (Ethlend’s token) at the rate of 100 LEND = 1 AAVE. The rest 3M belongs to Aave Reserve, used to develop the Aave ecosystem.
Therefore, the Token Allocation of Ethlend and Aave is the same for 13M AAVE.
AAVE Token Sale
As of November 30, 2017, through 4 rounds of ICO, it has raised $ 16,200,000.
The total number of Allocated tokens is 1 million tokens priced at 0.0000376 ETH / 1 AAVE equivalent to 0.0162 $ / 1 AAVE.
Total Raised: 37600 ETH or $16,200,000.
Tokens are sold through 4 rounds:
- Pre-sale for 1 ETH = 30,000 AAVE (price includes 20% bonus tokens).
- Round 1 cost 1 ETH = 27,500 AAVE (10% bonus).
- Round 2 ETH price = 26,500 AAVE (5% bonus).
- The 3rd round costs 1 ETH = 25,000 AAVE.
AAVE Token Release Schedule
Update…
How to earn and own AAVE token tokens
AAVE Token can be owned by buying directly on the exchange. Some of the biggest exchanges that have listed AAVE tokens include Binance, Okex, Huobi, and more.
AAVE Token exchange and storage wallet
AAVE Token Storage Wallet
AAVE token is an ERC-20 token, you can store it on Techtipsnreview Wallet with the following simple operation:
Step 1: At the main interface, select Receive.
Step 2: Enter AAVE in the search box.
Step 3: Copy the AAVE wallet address and send the AAVE token to this address.
AAVE Token Exchange
AAVE can now be traded on most CEX exchanges, or DEXs like Uniswap, SushiSwap,… or Techtipsnreview Exchange. You can Swap AAVE in the Swap section at the end of the post.
Information channels of Aave
Similar projects
Compound (COMP): The Lending protocol allows users to lend and borrow crypto assets without going through any third parties.
summary
Above is the latest information about Aave that I have updated, don’t forget to follow the column Coins & Tokens of Techtipsnreview Insights to get the fastest updates on detailed information about the hottest projects and coins/tokens on the Crypto market!
Source: What is Aave (AAVE)? Complete set of AAVE cryptocurrency
– TechtipsnReview
