Aave is a decentralized finance protocol that allows people to lend and borrow crypto.
Lenders earn interest by depositing digital assets into specially created liquidity pools. Borrowers can then use their crypto as collateral to take out a flash loan using this liquidity.
Aave (which means “ghost” in Finnish) was initially known as ETHLend when it launched in November 2017. Still, the rebranding happened in September 2018. (This helps explain why this token’s ticker is so different from its name!)
The alt coin provides holders with discounted fees on the platform. It also serves as a governance token — giving owners a say in the future development of the protocol.

Aave has several unique selling points when compared with competitors in an increasingly crowded market. For example, during the DeFi craze in the summer of 2020, Aave was one of the most significant projects. (in terms of the total value of crypto locked in its protocol.)

The project allows people to borrow and lend in about 20 cryptocurrencies, meaning users have a superb choice. One of Aave’s flagship products is “flash loans,” billed as the first uncollateralized loan option in the DeFi space. However, there’s a catch: they must be paid back within the same transaction.

In addition to the above-mentioned perks, another big selling point is how those who borrow through this protocol can alternate between fixed and variable interest rates. Now, while fixed rates can provide some certainty about costs during times of volatility in the crypto markets, variable rates can come in handy if the borrower thinks that prices will fall soon.