Then you’ve come to the right place. This crypto-currency is a decentralized lending network where participants deposit their funds into a pool, and then borrow them as needed. The system’s native token, what is AAVE? is traded on the market, and is capable of exceeding the value of $3.2 billion by October 2021. It was initially known as ETHlend, but its creator Stani Kulechov decided to rebrand it after being dissatisfied with the lack of lending applications built on the Ethereum platform. The word aave means ghost in Finnish, which is why AAVE is often referred to as ETHlend.
If You’re Wondering What Is Aave
AAVE has been the subject of much controversy, especially in the U.S., due to the recent Oakland School Board’s decision to adopt the Ebonics system as an official language of Oakland. While sociolinguists have been failing to disseminate their research and educate the public about AAVE’s history and benefits, many people continue to hold incorrect perceptions of the language. Whether you use aave or not depends on the situation.
Aave has adopted due diligence to ensure the security of its lending platform. It assigns a maximum loan-to-value ratio to assets. This ensures that in the event of a shortfall, the AAVE is liquidated for the assets required to fund the deficit. In addition, depositors are incentivized to deposit AAVE into the Safety Module. The yield on deposits into the Safety Module is also high, making AAVE the third largest DeFi application by value locked.