AAVE is a decentralized non-custodial liquidity protocol where users can participate as depositors or borrowers. Depositors provide liquidity to the market to earn a passive income, while borrowers are able to borrow in an overcollateralized or undercollateralized fashion.
AAVE offers a comprehensive suite of DeFi features that make it the leading liquidity protocol in the space
Borrow assets without collateral as long as the liquidity is returned in the same transaction block - the first uncollateralized loan option in DeFi.
Switch between stable and variable interest rates to optimize your borrowing costs based on market conditions.
Advanced gas optimization techniques reduce transaction costs, making DeFi more accessible to all users.
Delegate your credit line to other users without transferring custody of your collateral.
Earn interest in real-time through aTokens, which automatically accrue interest directly in your wallet.
Deployed across multiple blockchain networks including Ethereum, Polygon, Avalanche, and more.
AAVE creates money markets by pooling liquidity from suppliers and allocating it to borrowers according to algorithmically determined interest rates.
Users deposit supported cryptocurrencies into liquidity pools to earn passive income. In return, they receive aTokens which represent their deposit plus accrued interest.
Borrowers can take out loans by using their deposited assets as collateral. The Loan-to-Value ratio determines how much can be borrowed against the collateral.
Interest rates are algorithmically determined based on pool utilization rates. This creates an efficient market where supply and demand dynamically set borrowing costs.
If a borrower's collateral value falls below the required threshold, their position can be liquidated to protect the protocol and lenders from bad debt.
The AAVE token is the governance and utility token of the AAVE ecosystem, allowing holders to participate in protocol decisions and access premium features.
16,000,000 AAVE
$85.42
$1.23B
Up to 7% APY
AAVE token holders can stake their tokens in the Safety Module to help secure the protocol and earn staking rewards. They also have governance rights to vote on protocol upgrades, new asset listings, and parameter changes.
AAVE supports a wide range of digital assets across multiple blockchain networks. Here are some of the most popular lending markets:
| Asset | Total Supplied | Supply APY | Total Borrowed | Borrow APY |
|---|---|---|---|---|
| ETH | $1.2B | 0.85% | $450M | 2.15% |
| USDC | $950M | 1.92% | $620M | 3.45% |
| DAI | $780M | 2.15% | $510M | 3.82% |
| WBTC | $650M | 0.12% | $290M | 1.85% |
| AAVE | $420M | 3.25% | $180M | 5.42% |
AAVE prioritizes security with multiple layers of protection, regular audits, and a robust bug bounty program to ensure user funds remain safe.
Regular security audits by leading firms including Trail of Bits, OpenZeppelin, and CertiK.
Active bug bounty program with rewards up to $250,000 for critical vulnerabilities.
Key components formally verified to ensure mathematical correctness of the protocol.
AAVE token stakers provide a backstop for the protocol in case of shortfall events.
AAVE is a decentralized protocol that operates without intermediaries like banks. It uses smart contracts to automate lending and borrowing processes, offers global accessibility, provides transparency through blockchain technology, and allows users to maintain custody of their assets throughout the process.
Key risks include smart contract vulnerabilities, liquidation risk if collateral value drops significantly, volatility risk from asset price fluctuations, and regulatory uncertainty. However, AAVE implements multiple security measures including audits, bug bounties, and a safety module to mitigate these risks.
Lenders earn interest from borrowers who pay to use their deposited funds. Interest rates are algorithmically determined based on supply and demand in each liquidity pool. When utilization is high, rates increase to attract more lenders; when utilization is low, rates decrease to encourage borrowing.
The Health Factor represents the safety of your loan relative to your collateral value. It's calculated as (Collateral Value × Liquidation Threshold) / Borrowed Value. If your Health Factor drops below 1, your position becomes eligible for liquidation. Maintaining a high Health Factor is crucial to avoid liquidation.
Yes, AAVE is accessible on mobile devices through Web3-enabled browsers or wallet apps that have dApp browser functionality. Popular options include MetaMask Mobile, Trust Wallet, and Coinbase Wallet. The interface is responsive and optimized for mobile use.