DeFi Saver’s Recipe Creator a DeFi UX GamechangerRead on the DeFi Pulse Blog

Key Stats

Total Value Locked24H
in USD$13B+13.9%
in ETH5.2M ETH+2.4%
in BTC334.4K BTC-4.5%
ETH Locked1.15M ETH+19.8K ETH
% Supply Locked0.99%
Blockchain
Multichain
Most Locked$WETH
Protocol Token$AAVE

Total Value Locked (USD) in Aave

  • TVL (USD)
  • ETH
  • BTC
  • DAI
  • All
  • 1 Year
  • 90 Day
  • 30 Day
defipulse chart

What is Aave?

Aave (from the Finnish word for "ghost") is an open source non-custodial protocol on Ethereum for decentralized lending and borrowing. For lenders, the protocol mints ERC20-compliant aTokens at a 1:1 ratio to supplied assets. Interest immediately starts compounding continuously, represented by a steady increase in the amount of aTokens held by the lender. This interest stream may be redirected to any address, separate from the aTokens that represent the underlying principal. Users can borrow against most supplied assets; the collateralization ratio and liquidation threshold depends on the asset, as does the liquidation penalty, which anyone can get as a bonus for liquidating an unhealthy loan. Interest rates adjust algorithmically based on supply and demand, but Aave lets borrowers opt in to and out of (at any time) a stable rate that changes less often. The protocol keeps a liquidity reserve to ensure withdrawal at any time. Aave offers flash loans: trustless, uncollateralized loans where borrowing and repayment must occur in the same transaction. Aimed at developers, this feature could lead to innovative uses of DeFi. Aave's native governance token is LEND; the only fees are 0.25% of originated loans and 0.09% of flash loans; these go toward burning LEND, rewarding lenders, and compensating affiliates. Launched in Nov. 2017 as P2P lending project ETHLend and rebranded to Aave in Sept. 2018, the protocol went live on mainnet in Jan. 2020 with 16 supported assets (13 can be used as collateral). Aave's code has undergone two external security audits, and Aave maintains a bug bounty program.


How to use Aave?

To start using the Aave protocol, head over to the native web interface, app.aave.com. After you connect your Ethereum wallet, you can click on the Deposit and Borrow links to see which assets in your wallet are supported and the current interest rates for all assets on Aave. If you're a developer interested in trying out flash loans or building on the Aave protocol, you can start getting up to speed by reading through Aave's developers docs.

DeFi Saver’s Recipe Creator a DeFi UX Gamechanger

Users from around the world should be able to easily access the benefits of decentralized finance. Yet in DeFi’s early days, you could really only be initiated to these benefits by manually figuring things out on your own through trial and error. This has kept accessibility at bay in kind!  What’s needed, then, is an …

2021-06-07Read more >

Impermax’s Indirect Liquidity Providing Makes DeFi Easier

Previously, providing liquidity to automated market maker (AMM) projects in DeFi has been a manual and somewhat tedious process. You source the required amount of tokens for your desired pair, approve token contracts, pay gas fees to deposit, and then if you’re looking to farm further yields you might go and stake your new liquidity …

2021-05-26Read more >

AMA with Impermax Founder Simone Rigolon

This AMA session with Impermax Founder Simone Rigolon occurred on May 14th, 2021. The following is a transcription of the live from DeFi Pulse’s AMA Discord channel. To participate in future AMAs, please join our Discord and follow us on Twitter. Chaz Schmidt: Hello and welcome @everyone ! Thank you for joining us today for …

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Founder Fireside Chat with Robert Lauko of Liquity

The Founder Fireside Chat series hosted by DeFi Pulse interviews DeFi founders in the hopes of offering readers an opportunity to better understand their perspective and what drives them to build their vision. Welcome! We’re glad to have you back for another Founder Fireside Chat. This week, we sat down with Robert Lauko, Founder and …

2021-05-14Read more >