Aave (AAVE) Price

Buy Aave (AAVE)

Aave (AAVE) is available on the following exchanges:

Kraken is the best option for USA residents.

Binance – Best for Australia, Canada, Singapore, UK, and most of the world. USA residents cannot purchase AAVE here.  Use Discount Code: EE59L0QP for 10% cashback off all trading fees. 

About Aave (AAVE):

Aave is an Ethereum-based open-source lending and borrowing platform. The native token of the platform is called AAVE.

History

In 2017, Stani Kulechav launched ETHLend, a platform on which borrowers can post their loan requests and lenders can post their offers. The project was unsuccessful because of difficulty in matching lenders with borrowers. This led Stani and his team to work on a better solution. Released in 2020, Aave does not individually match lenders and borrowers; instead, it has a pool from which the loans are delivered.

The 2017 initial coin offering of Aave raised over 16mn. The sale included one billion AAVE ERC-20 tokens, 23% of which were reserved for the project and its founders. The current AAVE cryptocurrency was introduced in 2020. The crypto would swap with the tokens at a ratio of 1:100, resulting in a cap of 16mn AAVE.

Features

Aave allows users to deposit money and earn a passive income and/or borrow money by putting up their assets as collateral. User funds are stored in a smart contract and can be withdrawn on demand. Besides standard loans, Aave is known for offering a special type of loan called a flash loan.

A flash loan is an instant loan that the borrower must pay within the same Ethereum transaction. In other words, if the borrower fails to meet the conditions set by the lender, the whole transaction is reserved. These flash loans are possible because the Ethereum blockchain platform can accept transactions and add them to its permanent record or reject them and remove all history of those transactions.

Another feature of Aave is flexibility with interest rates. Users can alternate between fixed and variable rates.

Fees

Aave charges 0.00001% of the borrowed amount as a fee. The fee for flash loans is 0.09%. Blockchain transaction fees vary based on the transaction and network status.

To learn more visit our Investing in Aave (AAVE) guide.