Crypto:
32604
Bitcoin:
$101.396
% 0.63
BTC Dominance:
%54.6
% 0.27
Market Cap:
$3.59 T
% 0.23
Fear & Greed:
84 / 100
Bitcoin:
$ 101.396
BTC Dominance:
% 54.6
Market Cap:
$3.59 T

What is AAVE Network (AAVE)?

633Ee3B889712Fca0B43Da1D Aave

What is AAVE?

AAVE Network (AAVE) is a money market protocol in the decentralized world where users can participate as borrowers or lenders with variable interest rates. It runs on blockchains such as Ethereum, Avalanche, Fantom, Polygon, and allows capital holders to lend their cryptocurrency to those who need it for passive income in exchange for a certain amount of collateral.

The protocol was launched in November 2017 under the name “ETHLend”. At that time, decentralized finance was not sufficiently developed and therefore did not have sufficient liquidity. To solve this problem and serve the entire decentralized finance ecosystem, ETHLend changed its name to AAVE, which means “ghost” in Finnish, nd expanded its target audience.

What Does AAVE (AAVE) Token Do?

AAVE token is the governance token of the decentralized protocol mentioned in the What is AAVE question. Thus, we can say that AAVE investors own a share of the protocol. By locking their tokens, investors increase security, receive dividends, pay more favorable transaction fees, can use their tokens as collateral, and have a say in the voting before updates. In addition, it has the ERC-20 standard and is deflationary.

Let’s take an example to clarify the issue of voting:

Let’s think of the decentralized protocol as a public company. In this case, tokens are shares traded on the market. We define the people who own the tokens as shareholders. Anyone who is an AAVE investor can participate in votes and have a say, just like shareholders of a company. The responsibility for the enactment of the decisions made in these votes is undertaken by the project’s development teams, which we can liken to the boards of directors in companies.

READ:  What is Uma? What is it Used for?

AAVE Token Economy

Aave Dao Ag Guvenligi Icin Oylamaya Gitti Hgo7Wreq 1024X576 1

When did the AAVE pre-sale take place and what is AAVE? The first token offering, which we can call pre-sale, took place in November 2017. AAVE, then called ETHLend, sold 1 billion LEND tokens at $0.0162 each, generating $16.2 million in revenue. 23% of the tokens were allocated to the project’s developers and reserve.

After the name change, the tokens also had to be changed. For this reason, with the announced token exchange program, the new AAVE tokens were distributed to investors in exchange for the old LEND tokens at a ratio of 100:1. After the token exchange was completed, the distribution of the total supply of 16 million was realized as follows:

  • 13 million to LEND token holders
  • 3 million to the AAVE ecosystem reserve

Thanks to its deflationary nature, the amount of AAVE in circulation is decreasing day by day.

You might also like: What Is Nansen.ai ?

What is AAVE? Who is the Founder?

The answer to the question of what is AAVE and who is its founder takes us to Stani Kulechov. Kulechov, who learned programming at a young age and graduated from law school, is an early adopter of blockchain technologies.

Kulechov, who played a major role in the birth of decentralized finance due to his serial entrepreneurial nature, stands out as the person who made us ask the question of what is AAVE.

Is It Safe?

Aave Price Up Scaled Gid 6 E1678703527710 1024X425 1

The security of the protocol and user funds is a top priority for AAVE. For this reason, it runs on trusted blockchain networks and is open source. It has also had its code audited by the industry’s leading cyber security firms. The auditing firms are :

  • Trail of Bits
  • Certora
  • OpenZeppelin
  • Sigma Prime
  • PeckShield
  • ABDK
READ:  How To Use Trading View? What Is It?

Where Can I Buy It?

You can buy AAVE token through centralized exchanges such as Binance, KuCoin. This is the easiest way to buy AAVE Network (AAVE) because you won’t incur additional transaction fees. You can also buy it through decentralized exchanges like Uniswap, Sushiswap, Balancer if you have a Metamask wallet.

You can write us your comments on the subject. Also, if you want more of this kind of informative content, you can follow us on our Telegram, Youtube and Twitter channels.

Rate this post

Leave a Reply

Your email address will not be published. Required fields are marked *