Aave is a decentralized non-custodial liquidity pool that primarily offers crypto lending and borrowing services. The platform was founded in 2017 in Switzerland.
Aave does not require users to go through the KYC process. Besides, it restricts users from some countries including Côte d’Ivoire, Cuba, Belarus, Iran, Iraq, Liberia, North Korea, Sudan, and Syria from using the platform. Besides, the Aave platform is only accessible through the web.
Markets
Aave crypto exchange connects crypto lenders and borrowers directly, eliminating the intermediaries. Flash loans are the signature product of Aave. Such loans allow users to borrow any available amount of tokens without collateral. Flash loan requires the borrower to return the liquidity within one block transaction. Users must build a special contract that requests a Flash Loan. The contract executes the instructed steps and pays back the loan, interest, and fees in one transaction.
Several additional capabilities, including the collateral swap feature and loan repayment using collateral, were added to the upgraded Aave v2 protocol. Users who use collateral swapping can exchange their collateral for another supported item at any time. Borrowers who use loan repayment with collateral can use their collateral to pay off their entire loan sum in one transaction.
Overall, there's no such thing as the Aave spot market, in a traditional sense. However, swapping is employed instead by utilizing the automatic market maker (AMM) to facilitate the exchange of tokens between users. Aave cryptocurrency exchange supports more than 20 tokens including ETH and other ERC-20-based tokens. Overall, as of writing, there are 10 available Aave trading pairs. The AUSD/USDC pair has the highest Aave trade volume.
The Aave exchange fee for flash loan takers is 0.09%. The Aave crypto fees are paid to liquidity providers as a protocol incentive. The fee is subject to community governance. Besides, Aave does not charge any transfer fees or withdrawal fees. However, users may incur network fees which are paid to the miners of the relevant blockchain.
The native token of the platform is AAVE. The asset acts as a governance token and a mitigation tool. Besides that, AAVE tokens can be staked to generate more tokens. You can find more info about the token and check the current Aave crypto price here.
About the Company
Aave was founded by Stani Kulechov in 2017. The company's headquarters are in London, England.
Aave began as ETHLend in 2017 after raising $16.2 million in an ICO to create a peer-to-peer lending platform. The project rebranded to Aave when it switched to a liquidity pool model.
Since its inception, Aave has been striving to be the leading DeFi platform. Aave launched V2 in December 2020. The upgrade was designed with features aimed at improving the users' experience. The upgrade introduced an open-source and non-custodial liquidity protocol that enables users to earn interest on deposits and borrowed funds. The total value locked in the DeFi protocol crossed the $5.5 billion mark in 2022. The deep liquidity supports high Aave volume.
In 2022, Aave launched V3, which achieved a TLV of $1.59 billion in the first five months. The increasing liquidity will support even higher Aave trade volume.
Aave cryptocurrency exchange founder Stani Kulechov is a serial entrepreneur and programmer. He was an early adopter in the blockchain space.
