| Communication protocol | |
| Purpose | Decentralized finance |
|---|---|
| Developer(s) | Aave Labs |
| Introduction | January 2020 [1] |
| Website |
aave |
The Aave Protocol is an open-source, decentralized finance (DeFi) protocol built on the Ethereum blockchain and released in 2020. [2] [3] It is one of the largest cryptocurrency liquidity protocols. [1] [4] The Aave Protocol uses smart contracts to automate processes, including distributing funds and handling collateral. [5] [1]
Background
Aave Protocol allows anyone with a cryptocurrency wallet to supply and borrow cryptocurrency assets across Ethereum, Polygon, Avalanche, and other EVM blockchains by posting collateral, [1] [2] without third-party intermediaries such as banks and brokerages. [6] Suppliers share the interest paid by borrowers, who deposit cryptocurrency assets into different liquidity pools. [1] In turn, suppliers can use their cryptocurrency assets as collateral to borrow at stable or variable interest rates. [1] [2] There are currently three versions of Aave, each of which established upgrades to the protocol: V1, V2 and V3. [1] [7]
V3 introduced lower transaction fees and the ability to operate across virtually all blockchains. This allows borrowers and suppliers to trade in not just cryptocurrencies on the Ethereum blockchain, but also on Layer 2 blockchains that use Ethereum as a settlement layer. [1]
In October 2021, Aave reached approximately $28 billion in Total Value Locked (TVL) across multiple chains, including Polygon and Avalanche. [2] [8]
The Aave Protocol is governed by AAVE token holders who form the Aave Decentralized Autonomous Organization (DAO). [2] [1] The Aave DAO governs the protocol and proposes, discusses and votes on any changes to the protocol via Aave Improvement Proposals (AIPs).
History
The Aave Protocol was developed and released on Ethereum mainnet in January 2020 by Aave Labs founder Stani Kulechov. [1] [2] [9] Aave means "ghost" in Finland, where Kulechov immigrated. [10] [11]
Aave was preceded by ETHLend, also developed by Kulechov, which launched in 2017. [10] [12]
In July 2023, Aave released GHO, an Aave-native, decentralized stablecoin. GHO is backed by assets available in the Aave Protocol. [4]
References
- ^ a b c d e f g h i j Allcot, Dawn (2023-02-09). "What Is Aave Crypto Protocol?". AOL.com. Retrieved 2024-03-29.
- ^ a b c d e f Pandl, Zach (2021-10-22). "Opportunities and Risks in Decentralized Finance (Pandl/Rosenberg)". Goldman Sachs Research. Retrieved 2024-03-29.
- ^ Ao, Ziqiao; Cong, Lin William; Horvath, Gergely; Zhang, Luyao (2022-02-02). "Is decentralized finance actually decentralized? A social network analysis of the Aave protocol on the Ethereum blockchain". Papers. arXiv.org. Retrieved 2024-03-29.
- ^ a b Shen, Muyao (2023-07-15). "Biggest DeFi Lender Aave Set to Launch Decentralized Stablecoin". Bloomberg.com. Retrieved 2024-03-29.
- ^ Wade, Jacob (2022-11-15). "What Is Aave?". Investopedia. Retrieved 2024-03-29.
- ^ Chiu, Jonathan; Kahn, Charles M.; Koepp, Thorsten V. (October 11, 2022). "Grasping De(centralized) Fi(nance) Through the Lens of Economic Theory" (PDF). Bank of Canada. doi: 10.34989/swp-2022-43. ISSN 1701-9397. Retrieved April 3, 2024.
- ^ Young, Sage D. (2023-01-24). "Aave Community Voting to Deploy Version 3 on Ethereum". markets.businessinsider.com. Retrieved 2024-03-29.
- ^ Melinek, Jacquelyn (2022-03-23). "Despite declines, the value of crypto assets in DeFi protocols is up 3x from a year ago". TechCrunch. Retrieved 2024-03-29.
- ^ "Crypto Conversation: Aave 'LEND's Hand to Decentralized Finance Movement". TheStreet Crypto: Bitcoin and cryptocurrency news, advice, analysis and more. 2020-08-26. Retrieved 2024-03-29.
- ^ a b Nicolle, Emily; Kharif, Olga; Akhtar, Tanzeel; Miller, Hannah (2022-05-15). "Britain's Crypto List: Here Are the People to Watch". Bloomberg. Retrieved 2024-03-29.
- ^ "Stani Kulechov defied crypto winter". top-news.com.ua. Retrieved 2024-03-29.
- ^ Melinek, Jacquelyn (2023-11-16). "Aave Companies rebrands to Avara and acquires crypto wallet Family to expand its web3 reach". TechCrunch. Retrieved 2024-03-29.
External links
| Technology | |||||||||||||||
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| Proof of work currencies |
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| Proof of stake currencies | |||||||||||||||
| ERC-20 tokens | |||||||||||||||
| Stablecoins | |||||||||||||||
| Other currencies | |||||||||||||||
| Inactive currencies | |||||||||||||||
| Cryptocurrency exchanges |
| ||||||||||||||
| Crypto service companies | |||||||||||||||
| Related topics |
| ||||||||||||||
| Communication protocol | |
| Purpose | Decentralized finance |
|---|---|
| Developer(s) | Aave Labs |
| Introduction | January 2020 [1] |
| Website |
aave |
The Aave Protocol is an open-source, decentralized finance (DeFi) protocol built on the Ethereum blockchain and released in 2020. [2] [3] It is one of the largest cryptocurrency liquidity protocols. [1] [4] The Aave Protocol uses smart contracts to automate processes, including distributing funds and handling collateral. [5] [1]
Background
Aave Protocol allows anyone with a cryptocurrency wallet to supply and borrow cryptocurrency assets across Ethereum, Polygon, Avalanche, and other EVM blockchains by posting collateral, [1] [2] without third-party intermediaries such as banks and brokerages. [6] Suppliers share the interest paid by borrowers, who deposit cryptocurrency assets into different liquidity pools. [1] In turn, suppliers can use their cryptocurrency assets as collateral to borrow at stable or variable interest rates. [1] [2] There are currently three versions of Aave, each of which established upgrades to the protocol: V1, V2 and V3. [1] [7]
V3 introduced lower transaction fees and the ability to operate across virtually all blockchains. This allows borrowers and suppliers to trade in not just cryptocurrencies on the Ethereum blockchain, but also on Layer 2 blockchains that use Ethereum as a settlement layer. [1]
In October 2021, Aave reached approximately $28 billion in Total Value Locked (TVL) across multiple chains, including Polygon and Avalanche. [2] [8]
The Aave Protocol is governed by AAVE token holders who form the Aave Decentralized Autonomous Organization (DAO). [2] [1] The Aave DAO governs the protocol and proposes, discusses and votes on any changes to the protocol via Aave Improvement Proposals (AIPs).
History
The Aave Protocol was developed and released on Ethereum mainnet in January 2020 by Aave Labs founder Stani Kulechov. [1] [2] [9] Aave means "ghost" in Finland, where Kulechov immigrated. [10] [11]
Aave was preceded by ETHLend, also developed by Kulechov, which launched in 2017. [10] [12]
In July 2023, Aave released GHO, an Aave-native, decentralized stablecoin. GHO is backed by assets available in the Aave Protocol. [4]
References
- ^ a b c d e f g h i j Allcot, Dawn (2023-02-09). "What Is Aave Crypto Protocol?". AOL.com. Retrieved 2024-03-29.
- ^ a b c d e f Pandl, Zach (2021-10-22). "Opportunities and Risks in Decentralized Finance (Pandl/Rosenberg)". Goldman Sachs Research. Retrieved 2024-03-29.
- ^ Ao, Ziqiao; Cong, Lin William; Horvath, Gergely; Zhang, Luyao (2022-02-02). "Is decentralized finance actually decentralized? A social network analysis of the Aave protocol on the Ethereum blockchain". Papers. arXiv.org. Retrieved 2024-03-29.
- ^ a b Shen, Muyao (2023-07-15). "Biggest DeFi Lender Aave Set to Launch Decentralized Stablecoin". Bloomberg.com. Retrieved 2024-03-29.
- ^ Wade, Jacob (2022-11-15). "What Is Aave?". Investopedia. Retrieved 2024-03-29.
- ^ Chiu, Jonathan; Kahn, Charles M.; Koepp, Thorsten V. (October 11, 2022). "Grasping De(centralized) Fi(nance) Through the Lens of Economic Theory" (PDF). Bank of Canada. doi: 10.34989/swp-2022-43. ISSN 1701-9397. Retrieved April 3, 2024.
- ^ Young, Sage D. (2023-01-24). "Aave Community Voting to Deploy Version 3 on Ethereum". markets.businessinsider.com. Retrieved 2024-03-29.
- ^ Melinek, Jacquelyn (2022-03-23). "Despite declines, the value of crypto assets in DeFi protocols is up 3x from a year ago". TechCrunch. Retrieved 2024-03-29.
- ^ "Crypto Conversation: Aave 'LEND's Hand to Decentralized Finance Movement". TheStreet Crypto: Bitcoin and cryptocurrency news, advice, analysis and more. 2020-08-26. Retrieved 2024-03-29.
- ^ a b Nicolle, Emily; Kharif, Olga; Akhtar, Tanzeel; Miller, Hannah (2022-05-15). "Britain's Crypto List: Here Are the People to Watch". Bloomberg. Retrieved 2024-03-29.
- ^ "Stani Kulechov defied crypto winter". top-news.com.ua. Retrieved 2024-03-29.
- ^ Melinek, Jacquelyn (2023-11-16). "Aave Companies rebrands to Avara and acquires crypto wallet Family to expand its web3 reach". TechCrunch. Retrieved 2024-03-29.
External links
| Technology | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Consensus mechanisms | |||||||||||||||
| Proof of work currencies |
| ||||||||||||||
| Proof of stake currencies | |||||||||||||||
| ERC-20 tokens | |||||||||||||||
| Stablecoins | |||||||||||||||
| Other currencies | |||||||||||||||
| Inactive currencies | |||||||||||||||
| Cryptocurrency exchanges |
| ||||||||||||||
| Crypto service companies | |||||||||||||||
| Related topics |
| ||||||||||||||