Aave AAVE
Lending services and governance.
Aave is a protocol for supplying and borrowing digital assets. AAVE is its governance token.
What is Aave?
Aave uses smart contracts to manage lending markets. Suppliers provide assets, while borrowers generally provide collateral worth more than their borrowing. AAVE holders can participate in decisions about the protocol; holding AAVE is separate from supplying assets.
Collateral can be sold automatically if a borrowing position becomes too risky. Smart-contract risks also apply, and supplied funds are not a guaranteed-return savings account.
Why people pay attention
Lending markets
Smart contracts coordinate supplied and borrowed assets.
Collateral
Borrowing depends on the assets and risk rules of a market.
Governance
AAVE gives holders a role in protocol decisions.
Origins & development
Aave debuted in 2020 after the earlier ETHLend project. Protocol versions and markets have continued to evolve since that debut.
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