Learn about Aave
What is Aave?
Aave is a decentralized lending and borrowing platform built on Ethereum. The open-source and non-custodial liquidity protocol is an entry point for finding an active alternative to passive token holding. It enables users to deposit assets into liquidity pools which become funds that the protocol can lend out. Users can borrow digital assets as well as earn interest on their deposits. Aave also provides a platform for developers to build dApps on top of it.
Depositors on Aave can:
• Lend out their digital assets to other users
• Earn interest on their deposits
• Take out loans on their digital assets for making purchases or trading
• Access Aave’s built-in flash loan feature to borrow assets instantly, without any collateral
Aave also offers depositors the ability to earn interest on deposits by staking their assets, which allows them to earn additional rewards.
Borrowers on Aave can:
• Take out loans by depositing collateral to secure a loan
• Borrow large sums of crypto through the flash loan feature without providing collateral
Aave also offers a variety of other DeFi services, including yield farming, liquidity pooling, and staking.
A Timeline of Aave
The Aave Protocol was founded by a former Finnish Law student Stani Kulechov which began as ETHLend in 2017, and then underwent a rebranding to become “Aave” in 2019 before the AAVE token was launched in 2020. Now the Aave V3 iteration has been up and running since March 2022.
• ETHLend began and raised $16 million in the ICO funding round
• ETHLend rebranded and released as Aave
• Aave V1 public testnet launched
• January - Aave V1 launched and ETHLend ceases operations
• October - AAVE crypto token launched and LEND / AAVE migration 1:100
• December - Aave V2 launched with new features
• March - Aave launched V3 iteration - expanded to Harmony, Avalanche Fantom and more
• July - Aave community approved GHO launch - decentralized collateralized stablecoin
The word Aave means “ghost” in Finnish, which was most likely chosen to align with the vision for transparency. In DeFi, transparency is symbolic of trust and security. Aave strives for this via its open-source and self-custody nature, where users can manage funds safely, according to their wishes.
How does it work?
The Aave protocol works by allowing users to deposit their funds into a pool of liquidity and borrow against it, while providing a secure and stable environment. Users are also able to utilize Aave’s flash loans to access funds quickly, and at lower costs.
Users are given a share of tokens when they deposit into Aave, which represents their ownership of the funds in the pool. This token is known as the aToken, and it enables users to access the funds in the pool. Users can then borrow against their aTokens and receive a loan in a different asset. To do this, they must deposit collateral to secure the loan, which can be any ERC-20 token, such as ETH, DAI, or USDC.
Aave provides access to a marketplace of lending and borrowing options, known as the Aave Market. Here, users can compare different lending and borrowing rates and terms, enabling them to find the best deal for their needs.
Aave’s protocol also offers a wide range of features, such as liquidity mining, staking, and yield farming, which allow users to earn rewards for providing liquidity and depositing their funds into the pool.
Oasis.app with Aave
In October 2022 we expanded Oasis Earn into Aave with the AAVE stETH/ETH strategy. The strategy is based on getting extra exposure to the returns of stETH. So, enter this strategy with ETH to find the best of DeFi, and improve your staking yields.
Read more in our blog post.
We also recently launched the new Multiply functionality through Aave. With this new protocol for Multiply you can increase your exposure to wBTC, ETH and stETH in the same way as you do with Multiply for Maker. A user can enter a position with any of the supported collateral, select the multiplier, and open a long position through just a couple of clicks, without leaving Oasis.app. This allows you to put your borrowed USDC to work using the same familiar interface, but with Aave as the underlying protocol.
Find more details in our blog post.
Start multiplying on Oasis.app with Aave now!
The future of Aave
The future of Aave looks very promising, as the platform plans to expand its features and services over the coming years. We can expect Aave to increase its liquidity and the number of assets available for lending and borrowing, as well as creating more DeFi products and services available.
What to expect from Oasis.app?
We aim to keep providing the best user experience for Aave with more features incoming soon, including automations, more supported assets and Borrow. We have also been waiting for Aave V3 to deploy on Ethereum mainnet, and as it develops and gains traction, we will integrate V3 into Oasis.app too. We can't wait to share what we have planned for 2023!
To learn more about Oasis.app and keep up to date visit:
January 20, 2023