Aave (AAVE) / USD

Aave (meaning ghost in Finnish) is an Open-Source decentralized finance protocol that allows users to lend and borrow cryptocurrencies. It creates Non-Custodial Liquidity Markets to earn interest on supplying and borrowing assets with variable or stable rates. In this protocol, lenders can earn interest by depositing digital assets into liquidity pools. Simultaneously, borrowers can take loans in the same contract by using their crypto as collateral.  Depositors will provide liquidity to the market to earn a passive income, while borrowers can borrow in an overcollateralized (perpetually) or undercollateralized (one-block liquidity) fashion. AAVE tokens are built based on the ERC-20 standard, and they are designed to be deflationary assets. 

History

Aave was founded in 2018 by Stani Kulechov to set up a lending protocol for people engaged in the cryptocurrency community. Kulechov, an early adopter in the blockchain space, had a vision of setting up this lending protocol before the existence of decentralized finance.

Aave has several unique features when compared with its competitors. It allows people to borrow against collateral from across multiple networks and assets. People can borrow and lend in about 20 cryptocurrencies; this provides users to have a greater selection than their competitors. Users can stake their Aave tokens into the protocol and earn rewards for securing it. Token holders can participate in Aave governance and vote on new proposals, new assets, and protocol upgrades.

A significant feature of the Aave protocol is flash loans. This feature allows users to borrow from the reserves within a single transaction, as long as the user returns more liquidity than that has been taken. It is the first uncollateralized loan option in the DeFi space.

Another important point is the ability of a user to alternate between fixed and variable interest rates.  Fixed rates can provide an idea about costs during times of volatility in the markets, and variable rates can reduce the risk of loss during market crashes.  

The total supply of Aave tokens is capped at 16 million,  and 3 million of the total supply will be held in reserve. The current circulating supply is 13,657,986. 

Aave runs on the Ethereum blockchain. Aave is currently transitioning from Proof-of-Work to Proof-of-Stake.

The primary safety mechanism for securing the Aave Protocol is the incentivization of AAVE holders to lock tokens into a Smart Contract-based component called the Safety Module (SM). SM allows the locked Aave tokens to be used as a mitigation tool in case of a market deficit (Shortfall Event).

How To Buy AAVE With ZebPay?

You can get started with just a few easy steps:

• Register on ZebPay crypto exchange, and create an account.
• As standard verification, upload your documents and complete the KYC process.
• Choose the amount of money you want to invest and load your virtual wallet.
• Buy AAVE with the deposited funds.

Why Buy AAVE With ZebPay?

• Zebpay is one of the largest and safest crypto exchange.
• It is reliable and secure to buy cryptocurrencies such as Bitcoin, Ethereum, AAVE, and many more. 
• The overall focus of the exchange is to provide a user-friendly interface and simple transaction experiences. 
• The platform aims to provide full-proof and robust security measures for your wallet.