The price Aave today is 315.51 USD, and the trading volume in 24 hours - 345,848,544 USD. The crypto asset has grown by 6.5% over the day. Currently, the coin’s market capitalization is 4,074,616,203 USD, and has 12,914,429 coins in circulation with the max supply of 16,000,000 coins AAVE.
What is Aave (AAVE)?
One of a number of emerging DeFi cryptocurrencies, Aave is a decentralized lending system that allows users to lend, borrow and receive interest on crypto assets without intermediaries.
Aave, which runs on the Ethereum blockchain, is a smart contract system that allows you to manage these assets through a distributed network of computers running its software.
This means that Aave users do not need to trust a specific institution or person to manage their funds. They only need to trust that its code will execute as written.
At its core, the Aave software allows you to create credit pools that allow users to lend or borrow 17 different cryptocurrencies, including ETH, BAT, and MANA.
Like other decentralized lending systems on Ethereum, Aave borrowers must provide collateral before they can borrow. In addition, they can only borrow up to the amount of the collateral they place.
Borrowers receive funds in the form of a special token, known as aToken, which is tied to the value of another asset. This token is then encoded so that lenders receive interest on deposits.
A borrower can place collateral in DAI, for example, and borrow in ETH. This allows the borrower to obtain access to various crypto-currencies without owning them directly.
Aave can also introduce additional features such as instant loans and other forms of debt and loan issuance that take advantage of the unique design properties of blockchains.
What makes Aave unique?
Aave can perhaps best be described as a credit pool system.
Users deposit funds for the loan, which are then collected in a pool. Borrowers can then use the funds from these pools when they take out a loan. These tokens can be sold or transferred at the request of the lender.
To facilitate this activity, Aave issues two types of tokens: atokens, issued to lenders so that they can receive interest on deposits, and AAVE tokens, which are proprietary blockchain tokens.
The AAVE cryptocurrency offers holders several advantages. For example, borrowers are not charged a fee if they take out loans denominated in a token. In addition, borrowers who use AAVE as collateral receive a discount on the commission.
AAVE owners can further examine the loans before they are made available to the general public if they pay a fee to AAVE. Borrowers who put up AAVE as collateral can also borrow a little more.
- Term loans
Aave allows you to instantly issue and repay certain loans, called "instant loans". These loans do not require prior collateral and are issued almost instantly.
Flash credits use a feature of all blockchains, which is that transactions are completed only when the network accepts a new batch of transactions, known as a block.
The addition of each new unit takes time. In Bitcoin, this interval is approximately 10 minutes. On Ethereum, it's 13 seconds. Thus, during this 13-second period, the Aave flash credit occurs.
The term loan works as follows: the borrower can request funds from Aave, but they must pay these funds together with a commission of 0.09% within a single block. If the borrower does not do this, the entire transaction will be canceled, so that no funds will be borrowed. As a result, neither Aave nor the borrower is at risk.
How many AAVE coins are in circulation?
At the moment, out of 16 millionn of the maximum supply there are 12,104,735 million AAVE coins in circulation.
- To own your crypto assets, you need to manage your own private keys.
- Ledger hardware wallets make private key management easy and secure.
- Each unique 24-word recovery phrase creates a new set of private keys.
- Make sure you secure your 24-word recovery phrase properly.