$AAVE A crypto Aave is one of the leading digital currencies that run on the Ethereum blockchain. It is a lending platform that allows users to earn interest on their cryptocurrencies in wallet, as well as acting as a fast credit platform for users. Through smart contracts, Aave enables users to take advantage of the DeFi ecosystem without the interference of any intermediary. It also offers unsecured loans through the 'flash loan' feature. However, the borrowed funds must be repaid within the period of a block.
The crypto Aave primarily operates as a lending platform. Aiming to revolutionize the credit industry, Aave allows users to borrow against their digital assets without losing the interest accrued on their investments or capital. It also offers a feature called 'flash loan', which allows the user to borrow without paying any collateral. However, the credit must be repaid within a particular period. On the Ethereum network, transactions are validated in 17 seconds, so any 'flash loan' must be settled within that period. If the borrower defaults, the loan is reversed, meaning no funds were taken as a loan.
Stani Kulechov founded the Aave protocol in 2017 as ETHLend. Kulechov had the idea after discovering that the Ethereum network did not have credit applications. This happened even before the emergence of DeFi, making Aave one of the pillars of the emerging subsector. According to Kulechov, ETHLend was renamed to Aave because he wanted to offer more credit services beyond lending by Ethereum. This made him expand the protocol's coverage, taking into account cryptocurrency users from all networks.
