What is Aave?
Aave is an Ethereum-based lending protocol. It provides options of lending, borrowing, and gaining interest in crypto without intermediaries. The platform has its native token AAVE, due to which users can govern it. The platform changed a lot since its foundation in November 2017. Then Stani Kulechov and a team of engineers launched ETHLend in an ICO. In 2018, the team renovated the protocol making it more convenient for users. They created Aave token and ETHLend became a subsidiary. Aave is an Ethereum-powered ERC-20 token. The token owners can stake AAVE in the Safety Module and earn Safety bonuses. The Safety Module serves as a means against an unexpected loss of funds. In case it occurs, 30 percent of staked tokens are used to cover the deficit. Safety rewards are limited to 400 AAVE’s per day. The token also allows considering and voting on the upgrades. The users can vote to change Aave rules or policies. One AAVE equals one vote.