Aave is a decentralized finance (DeFi) protocol that enables users to lend and borrow cryptocurrencies without needing a central authority or intermediary. Launched in 2020, Aave has quickly gained traction in the DeFi space due to its innovative approach to lending and borrowing. Users can deposit their crypto assets into liquidity pools and earn interest, while borrowers can take out loans using their crypto as collateral. One of Aave's standout features is its support for flash loans, which allow users to borrow funds without collateral as long as the loan is repaid within the same transaction block.
Aave’s native token, AAVE, serves multiple purposes within the ecosystem. It grants holders governance rights to participate in protocol decisions, acts as collateral for borrowing, and can be staked to earn rewards and secure the network. The platform's emphasis on transparency, user control, and innovation has made Aave a popular choice for those seeking decentralized financial solutions. As a leader in the DeFi industry, Aave continues to play a key role in shaping the future of decentralized finance.