Aave

AAVE is a decentralized, open-source, and non-custodial liquidity protocol built on Ethereum. It allows users to earn interest on deposits and borrow assets with just a few clicks. AAVE, which means 'ghost' in Finnish, was originally known as ETHLend when it was founded in 2017, but rebranded to AAVE in 2020.

AAVE's primary function is to create lending pools that enable users to lend and borrow a diverse range of cryptocurrencies. Lenders earn interest by depositing digital assets into specially created liquidity pools. Borrowers, on the other hand, can use their crypto as collateral to take out loans. The interest rates are algorithmically adjusted based on the supply and demand for different cryptocurrencies. One of the unique features of AAVE is the introduction of 'flash loans', which are essentially uncollateralized loans that must be borrowed and repaid within the same transaction. This feature has opened up new possibilities for developers, such as arbitrage opportunities without upfront capital.

AAVE's native token, also named AAVE, has multiple uses within the protocol. It can be staked to secure the protocol, used as a governance token to vote on AAVE Improvement Proposals (AIPs), and also used to earn rewards.

In July 2023, AAVE released a decentralized stablecoin, GHO, which users can mint by over-collateralizing assets deposited in the AAVE protocol. As the demand for GHO grows, it will attract more users to use AAVE.

Above are only for introduction, not intended as investment advice.