Aave (AAVE)

Aave is a decentralized network for borrowing and lending. The platform has several important characteristics, such as credit delegation, trustworthy uncollateralized loans; flash loans, which are uncollateralized loans when borrowing and repayment happen in the same transaction; and borrowing and lending capabilities typical of decentralized lending platforms.

CEO Stani Kulechov established Aave in November 2017 with the intention of "building financial products that people need, while also having some fun." Originally known as ETHLend, Aave changed its name to its present one in September 2018. In November 2017, it raised $600,000 in Ether under the name ETHLend. There are 19 people on the team, all with different backgrounds.

The native governance token of the platform, AAVE (formerly LEND), offers savings on network costs to its holders. Aave provides a wide range of assets, including offerings on layer 2 Ethereum networks like Polygon, and has listed a far higher amount of assets than other platforms of its sort against which loans may be made. This, along with its fast loan function, has helped it become a popular option for borrowing and has fueled its rapid expansion in 2020 and 2021.

Users may select the most lucrative interest rates by using the rate switching tool, which lets them move between fixed and variable rates. With its credit delegation feature, Aave is the first company in the DeFi industry to enable customers to borrow money without having to submit collateral. The team advises users to only sign this contract with individuals they can trust, and Aave is developing an insurance fund to safeguard money in case something goes wrong.

On January 9, 2020, Aave became live on the Ethereum (ETH) mainnet. The majority of the technological upgrades have been finished, but the team has promised to continue researching and creating additional features in the future.