What is Aave (AAVE)?

Aave – AAVE

Wondering where to start your passive income journey in the hazardous world of DeFi?

It’s only right that we take a deep dive…

This is a Project Review on AAVE.





What is Aave (AAVE)?

Wondering where to start your passive income journey in the hazardous world of DeFi?

It is safe to say that DeFi is home to many scams, pump and dumps and Ponzi schemes. We are all looking for those insane yields, but 99.99% of the time they are unrealistic and rely on new investors to keep the project afloat.

The most legitimate way to earn passive income with cryptocurrencies is to provide liquidity (Lend). With 7 compatible blockchains and over $7.6B in Total Value Locked (TVL), I think it’s safe to say that @AaveAave is the number 1 destination for Borrowing & Lending.

Aave is DeFi’s leading Borrowing & Lending protocol that first launched in 2017 on the Ethereum network, which at the time, Aave was called ETHLend. Today, Aave is compatible with Arbitrum, Avalanche, Optimism, Fantom, Polygon and Harmony.

How does Aave work?

Simply put, Aave works by enabling pool-to-peer lending. This allows users to deposit assets into a pool which Aave will then be able to lend to users who are looking to borrow those assets.

Here is an example of how it works:

The lender deposits $100 of $USDC into the pool and will receive $aUSDC in return. $aUSDC entitles the lender to earn interest (APY% will vary). For borrowers, it’s the complete opposite. In order to borrow funds, you will have to pay interest!

This essentially works like a bank but without all the hassle. Thanks to DeFi we can now eliminate banks completely and replace them with smart contracts! Be aware that DeFi protocols such as Aave will still require collateral for those borrowing assets.

$AAVE Token

As Aave likes to remain 100% decentralised, they choose to be a DAO. This allows the entire 160k+ community of $AAVE holders to create and/or vote on any Governance proposals. $AAVE is the native token which is strictly used for Governance. For every 1 $AAVE token is 1 Vote.

For those who are lending assets and are earning interest, you can also utilise your rewards by Staking them. If you stake $AAVE you can earn around 6.14% APR or at the moment you can stake $ABPT for 12.20%.


It is safe to say that Aave is a top-tier destination for users looking to initiate their passive income stream. If you would like to learn more about Passive Income, Liquidity Pools or Staking, then check out our website which will be linked at the end of the thread.

At the time of writing, $AAVE is sitting at a price of $71.38, ranked #48 on @CoinMarketCap and has a market cap of $1B! The $AAVE token once peaked at an all-time high of $666.86 and reached a market cap of over $8B!


Website – https://aave.com/

Twitter – @AaveAave




That’s it! Thanks for reading! Have a look at our Guides section for more!

If you’re interested in learning more about Web3 and getting free crypto alpha, be sure to follow me on Twitter – @AltCryptoGems.