Down the Rabbithole: AAVE, Your Friendly Web3 Defi Ghost
AAVE is a non-custodial liquidity protocol for generating interest on deposits and borrowing assets that is open-source and community-governed. Since its Mainnet launch in January of this year, AAVE has established itself as a leader in decentralized finance. So much so that it now controls 14.53 percent of the Defi market.
Going deep into the numbers, the entire Defi industry has $683.566M in TVL (at the time of the AAVE protocol’s Mainnet debut in January 2020). It now has $61.29 billion in assets. Industry leaders normally fuel such massive growth in a sector, and in this area, we bring you Defi Industry’s treasure — AAVE.
Exploring the AAVE Defi Platform
AAVE provides $10.81 billion to Defi Industry’s $61.29 billion valuations, with $WETH being the most locked coin. According to another estimate, Bitcoin’s TVL is larger at 320K BTC (about $1,70,56,44,00,000) than Ethereum’s, which has a total value locked of $5.1M ETH (approx $10,70,42,88,000).
A look at $AAVE, the AAVE Governance and Utility Token.
AAVE’s native token, $AAVE (formerly $LEND), rewards users who hold the token and utilize it to conduct transactions on the AAVE platform. $AAVE has reached an all-time high of $658.92 since its inception in May of this year. This equates to a 631.2 percent return on investment for ETHLend ICO participants. The current price of the $AAVE token can be found here.
AAVE first appeared on Polygon in late March, and since then, the number of people holding the $AAVE token has steadily increased. A three-month data set (12th May — 12th July) reveals an increase of 5.2K users, from 79.93K to 85.2K.
Aave is a decentralized lending platform that allows users to lend, borrow, and earn interest on crypto assets without the use of intermediaries.
Instead, Aave is a smart contract solution that allows these assets to be handled by a distributed network of computers running its software. It runs on the Ethereum blockchain.