Aave (AAVE) is a decentralized finance (DeFi) protocol launched in 2020 that allows users to lend, borrow, and earn interest on cryptocurrencies without intermediaries. Built on the Ethereum blockchain, Aave uses smart contracts to create transparent and secure lending markets. Users can deposit assets into liquidity pools and earn passive income, while borrowers can take loans either with fixed or variable interest rates. One of Aave’s unique features is “flash loans,” which allow instant borrowing without collateral if the loan is repaid within the same transaction. AAVE, the protocol’s native token, is used for governance and staking.
