Aave

About Aave

Aave AAVE is a decentralized lending and borrowing protocol built on Ethereum that allows users to supply and borrow cryptocurrency assets without relying on a central intermediary. It introduced innovative features like flash loans, which enable uncollateralized borrowing within a single transaction, and variable or stable interest rate options. Liquidity providers earn yield by depositing assets into shared pools, while borrowers must overcollateralize their positions. The native AAVE token serves as both a governance instrument and a safety mechanism through the protocol's Security Module, making it a foundational pillar of decentralized finance.