Aave is a decentralized platform that was created so that users can both lend and borrow cryptocurrencies. To use this platform, no intermediary or documentation is required at all. In fact, Aave was almost the first DeFi (decentralized public blockchain-based financial services ecosystem) lending protocol.
Now it's worth talking about how it works. Today they offer lending support for 17 different cryptocurrencies. There is a place (“pool”) where lenders put their personal funds. Therefore, different users can borrow from these pools. To prevent any volatility within the protocol, each pool allocates a small percentage of the assets as reserves. Lenders can withdraw their funds at any time due to the borrower’s collateral. A loan that can be taken is up to 75 percent of the collateral. It guarantees creditors a full refund at any time. In case the loan is not repaid, the borrowers forfeit their collateral. If you have a deposit on the Aave platform, you can take out a loan using your deposit as collateral.
Aave uses its own token, which grants discounts to borrowers.
The main goal of the platform is to eliminate the deficiencies that centralized giants like PayPal, Coinbase, and Skrill had.
The Aave Protocol, which is an open and non-custodial protocol for creating money markets on the Ethereum blockchain, is the main product of the platform.
The team behind the development of the Aave platform consists of diverse creators from different countries. The platform's CEO is Stani Kulechov. Chief Operating Officer - Jordan Lazaro Gustav. Stani was the founder of ETHlend (a marketplace where lenders and borrowers discussed the terms of deals without third parties), and Jordan was also COO here. But they soon decided they were ready to take it to the next level and make a name in the DeFi space. Thus, they shifted their roles to Aave. Since then, ETHlend became a subsidiary of Aave.
The team also has a creative director, several managers, and software engineers. According to the latest data, the team consists of 26 people.
The London company Aave got its name from the Finnish word “ghost”. It was created in September 2018.
Now you know about the advantages and disadvantages of the Aave platform and its AAVE token. If you want to buy the AAVE token, you are welcome to use the SimpleSwap service. And so that you do not get confused, we suggest you read the instructions:
There is no need to think twice about whether to start using SimpleSwap. It's worth it!