Aave is an open source, non-custodial protocol for lending and borrowing cryptocurrency. It is based on the Ethereum blockchain and allows users to lend and borrow digital assets in a decentralized manner.
One of the unique features of Aave is that it allows users to earn interest on their deposited assets by providing them as collateral to borrowers. This is known as "deposit lending." Users can also borrow assets by providing collateral, similar to how traditional borrowing works.
Aave operates using a system of smart contracts, which are self-executing contracts with the terms of the agreement between buyer and seller being directly written into lines of code. This ensures that the terms of the agreement are transparent and can't be changed by either party.
Another key aspect of Aave is that it allows users to switch between different lending and borrowing pools, known as "pools," with just a few clicks. This means that users can easily move their assets between pools to take advantage of the highest interest rates or to diversify their portfolio.
Overall, Aave provides a decentralized, transparent, and flexible platform for lending and borrowing cryptocurrency. It has gained significant traction in the crypto community and is widely regarded as a leader in the decentralized finance (DeFi) space.
