Aave (AAVE)

  • Official Website: aave.com
  • Definition: Aave is a decentralized lending and borrowing protocol on Ethereum.
  • Category: DeFi, Token.
  • What It Is: A platform for earning interest on deposits and borrowing assets.
  • Function: Enables decentralized lending and borrowing without intermediaries.
  • Analogy: Think of Aave as a digital bank. You can deposit money to earn interest or borrow assets when needed.
  • Pros: Decentralized, no KYC, strong community.
  • Cons: High gas fees, smart contract risks.
  • Controversies: Regulatory scrutiny, competition from other DeFi platforms.

This page was last updated on January 28, 2025.