Aave
Leading DeFi lending protocol — borrow or lend crypto without a bank.
Aave is a decentralized lending protocol allowing users to deposit cryptocurrencies and earn interest, or take loans using crypto as collateral.
How it works:
•Deposit: deposit USDC → receive aUSDC (interest-bearing token) that automatically grows
•Loan: collateralize 150% in ETH → borrow up to 66% of value in USDC
•Interest rate: dynamic, changes with supply and demand
•Liquidation: if collateral falls below LTV limit, position is automatically liquidated
Innovations:
•Flash loans — invented by Aave, global DeFi innovation
•Debt delegation — delegate credit limit to someone you trust
•GHO stablecoin — Aave's own decentralized stablecoin
•Aave v3 — more efficient collateral use, cross-chain positions
TVL: $10–20+ billion (one of the largest DeFi protocols).
AAVE token: governance and safety module staking.