Aave
Decentralized finance (DeFi) platform that operates as an open-source liquidity protocol. It allows users to earn interest on deposits and borrow assets using various cryptocurrencies as collateral.
| Date | Investors | Amount | Round |
|---|---|---|---|
| - | investor investor investor | €0.0 | round |
* | N/A | $15.0m | Early VC |
| Total Funding | 000k | ||
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Aave is a decentralized finance (DeFi) protocol that enables users to lend and borrow a diverse range of cryptocurrencies. It operates as a non-custodial liquidity protocol, meaning it does not hold or control users' funds, which are instead managed by smart contracts on the Ethereum blockchain.
Users can participate as depositors or borrowers. Depositors provide liquidity to the protocol by depositing their crypto assets into liquidity pools, and in return, they earn interest. Borrowers can take out loans from these pools by providing collateral in the form of other cryptocurrencies. The value of the collateral must be higher than the value of the loan, a system known as overcollateralization, which secures the protocol against defaults.
Aave also features flash loans, which are uncollateralized loans that must be borrowed and repaid within the same blockchain transaction. The protocol is governed by its community of AAVE token holders, who can vote on proposals and updates to the platform.
Keywords: decentralized finance, crypto lending, liquidity protocol, non-custodial, overcollateralized borrowing, flash loans, Ethereum, smart contracts, AAVE token, community governance.
