Aave
AAVE✓ Verified$123.84▲ 0.28%
Price · Aave · USD
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About
Aave is the leading decentralised lending protocol: deposit crypto to earn interest or borrow against collateral.
LendingDeFi
A lending bank without a banker
Depositors fund reserves and earn a variable interest; borrowers post collateral worth more than their loan. If the health factor falls below 1, liquidators repay part of the debt and take the collateral at a discount. Aave popularised flash loans, borrowed and repaid within one transaction.
10 ETH collateral, 15,000 USDC borrowed, 82.5% threshold
Specific risks
- Liquidation cascades in sharp falls.
- Reliance on price oracles.
Questions and answers
Where does the depositors’ interest come from?
From borrowers. The rate rises when a large share of deposits is borrowed, to attract new deposits.
Notitia newsroom · education, not investment advice. Crypto-assets are very volatile.