AAVE (Aave) is a prominent decentralized finance (DeFi) protocol that enables users to lend and borrow cryptocurrencies. Its history is marked by a significant evolution from its initial concept to its current standing as a leading player in the DeFi space.

Here's a breakdown of the history of AAVE coins:

1. Origins as ETHLend (2017):

* Founded: Aave was founded in 2017 by Stani Kulechov, a Finnish entrepreneur and law student.

* Initial Focus: It was initially launched as ETHLend (Ethereum Lending), aiming to facilitate peer-to-peer lending on the Ethereum blockchain. This involved users directly connecting to lend and borrow cryptocurrencies using smart contracts.

* ICO: In 2017, ETHLend conducted an Initial Coin Offering (ICO), raising $16.2 million by selling its native token, LEND.

2. Rebranding to Aave (2018):

* Name Change: In September 2018, ETHLend rebranded to Aave. The name "Aave" is derived from the Finnish word for "ghost," symbolizing the protocol's goal of creating a transparent and open infrastructure for decentralized finance.

* Shift in Model: Along with the name change, the operating model also shifted from a direct peer-to-peer model to a liquidity pool-based system. This allowed multiple lenders and borrowers to interact with shared pools of assets, significantly increasing liquidity and accessibility.

3. Launch of Aave Protocol and AAVE Token (2020):

* Protocol Launch: The Aave protocol officially began operating on the Ethereum network in January 2020.

* AAVE Token Introduction: The native governance token, AAVE, was launched in October 2020. This involved a token migration where LEND holders could exchange 100 LEND for 1 AAVE. The AAVE token gives its holders the ability to participate in decision-making regarding protocol changes, governance, and other aspects of the Aave ecosystem.

* Key Innovations: Aave introduced several groundbreaking features, notably "flash loans," which allow users to borrow assets without collateral, provided the loan is repaid within the same transaction.

4. Expansion and Growth in DeFi (2020-Present):

* DeFi Boom: Aave greatly benefited from the explosion of decentralized finance in 2020-2021, becoming one of the largest and most influential DeFi protocols.

* Multi-Chain Expansion: Aave has expanded its operations beyond Ethereum, deploying on several other blockchains like Polygon, BNB Chain, Arbitrum, and Aptos (Aave V3).

* Institutional Offerings: In late 2021, Aave released Aave Arc, an institutional-only lending protocol that complies with KYC (Know Your Customer) and AML (Anti-Money Laundering) standards.

* Aave V3: The third version of Aave, Aave V3, was released in early 2022, bringing further enhancements and cross-chain capabilities.

* GHO Stablecoin: Aave also launched its own decentralized, collateral-backed stablecoin, GHO, following a community governance vote.

Key Figures:

* Stani Kulechov: The founder and current CEO of Aave, who envisioned and led the development of the protocol from its early days as ETHLend.