The Aave protocol is a non-custodial, decentralized, open-source money market protocol.
-It was founded by Stani Kulechov
-It is built on ethereum and is making a transition from Proof-of-Work to Proof-of-Stake.
Aave is a decentralized money market protocol running on the Ethereum blockchain that allows users to lend and borrow cryptocurrencies of their choice in a reliable way while offering steady and variable interest rates.
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.
Interaction between lenders and borrowers can take place either with the user interface client, API or directly with the smart contracts on the Ethereum network. Around 20 cryptocurrencies are accepted and supported by Aave; however, all cryptos cannot be used as collaterals.
Aave is emerging as a market leader for the lending and borrowing sector of the DeFi space. This is because Aave sets users free from all the protocols that deal with KYC and involve lengthy registrations.
Historical Price Movement (in INR)
Aave is an algorithmic money market wherein loans are offered from a pool instead of being individually matched to a lender.
Since, it's based on the ethereum platform, the programming language used is Solidity.
Aave permits its users to get loans in a different cryptocurrency than they deposited. For instance, a user may deposit Ethereum (ETH), then withdraw litecoins to deposit into Yearn finance (YFI) to receive a regular yield.
Some of the features Aave Platform has
Flash loans: In case when there is unused liquidity within the pool then borrowers take out uncollateralized loans and then return the loan as part of the same transaction – with a 0.09% fee.
Rate switching: Rate switching service is formulated in order to address the volatility of the crypto markets wherein borrowers are allowed to either lock in the interest rates of their loans or choose to stick with floating rates.
Founder and Project
Volume (As of 3rd April, 2022)
Aave has raised $49 million in six rounds of investment.
30/01/2021: Secondary Market - NA,
12/10/2020:Venture Round - $25M,
15/07/2020: Initial Coin Offering-$3M,
8/072020: Initial Coin Offering- $4.5M
1/07/2020: Initial Coin Offering- NA
25/11/2017: Initial Coin Offering- $16.5M
Name of Organization
Piazza Indipendenza 3 Chiasso 6830 Switzerland
Dispute Resolution and Governing Law
Country Risk Assessment
|Stani Kulechov||Founder and CEO||University of Helsinki: Master’s Degree, Law||5 Yrs|