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Aave DeFi Token

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Written by   29
2 years ago

It is no longer news that on September 26th, 20, Aave launched the mainnet of its governance platform and subsequently unveiled its very first Aave Improvement Proposals {AIP} for voting.

Majority overwhemingly voted for Lend tokens to be fully converted to Aave and upon approval, Lend was converted to Aave on a ratio of 100 Lend to 1 Aave.

Stani Kulechov in 2017 started EthLend platform with its native token as Lend. In 2018, Ethlend was renamed Aave which means Ghost.

Today, Aave has emerged as one of the DeFi projects to reckon with as a decentralized lending platform. My prior experience borrowing and lending crypto on Kucoin Exchange attracted me to Aave as you get to Lend, borrow, and earn crypto assets in a fully decentralized way without the influence of a middleman. Remember, not your keys, not your coins.


Aave is built on ethereum blockchain and it is run on series of smart contracts that formed the basis of decentralization as these smart contracts executes automatically.

Tokens on Aave platform is called Atokens. The Atokens are tokens supported by the aave ecosystem for lending and borrowing and are currently 22 Atokens that include; DAI, USDT, TUSD, USDC, SUSD, BUSD, GUSD, AAVE, UNI, YFI, BAT, REN, ENJ, KNC, LINK, MANA, ZRX, CRV, MKR, SNX, Wrapped Bitcoin and Wrapped Ethereum. The Total Value Locked as at 25th January is $3.8 Billion

Loans on Aave platform are collaterized loans and the collateral must be greater than or equal to the amount you wish to borrow. For example, you intend to borrow MKR, you can collaterize this loan with equal amount of YFI.

Pecks of hodling Aave and using it as a collateral as a borrower include discount on fees payable on loans, you get to borrow slightly higher than others, you also get to see loans before they are released to the pulic and you can get an uncollaterized loan called flash loan {I don't know how this works}. As a lender on Aave, there's nothing to be afraid of as the total value locked on Aave is not affected by loans taken.

One good reason to hold Aave is the fact 80% of fees collected on the platform are used to burn Aave with 20% paid to lenders. i believed with supply of Aave reducing, price will continue to grow. All you need to lend your tokens on Aave is a good web 3.0 wallet as a browser extension of which I'll recommend MetaMask.

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Written by   29
2 years ago
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