About Aave

The Aave price is $60.77, a change of 1.98% over the past 24 hours as of 1:31 p.m. The recent price action in Aave left the tokens market capitalization at $876,432,527.47. So far this year, Aave has a change of 17.26%. Aave is classified as a DeFi under CoinDesks Digital Asset Classification Standard (DACS).

Aave (AAVE) is the native cryptocurrency of the Aave platform: a decentralized finance (DeFi) platform where users can borrow a range of cryptocurrencies, as well as lend assets in exchange for interest payments, all without needing a middleman.

Aave price

AAVE was first distributed following an initial coin offering in November 2017, in which Aave raised $16.2 million. A total of one billion coins were sold. Initially, 77 percent of the total Aave project tokens went to investors, while 23 percent went to the project and the project’s founders.

In 2020, Aave arranged a token swap for users to swap the outdated LEND coin for the new AAVE coin at a ratio of 1:100, meaning 1 AAVE for every 100 LEND. The new AAVE token built in more features so that users could have more control over the protocol.

The AAVE token provides users with certain perks, including lower fees on the platform. AAVE is also a so-called “governance token,” meaning users can vote on decisions that will affect the future of the platform.

AAVE’s price hovered at around $60 near the end of 2020, according to price data provider CoinMarketCap, before spiking to a high of $529 in February 2021 amid an industry-wide crypto bull run. AAVE’s price hit a peak of $638 in May 2021, according to CoinDesk’s historical price data.

How Aave works

Aave connects cryptocurrency borrowers with lenders directly so that they don’t have to go through a trusted middleman as they would in traditional finance. Like with normal loans, lenders can earn interest from lending their funds to others. An easy way to think of it is Aave allows people to become their own banks, and loan money to people like a bank would and charge interest.

There are more than 30 cryptocurrencies that users can borrow and lend, including ether, the native token of the Ethereum blockchain, and dai.

As described in Aave’s white paper, to lend cryptocurrencies, lenders lock up their funds into a “liquidity pool” of tokens. That pool is secured by a smart contract, a method of replacing intermediaries with code with the help of a blockchain to allow for new types of interactions online. In this case, the smart contract helps to match lenders with borrowers without requiring a middleman.

When locking their funds into the pool, the lender in return retrieves an “aToken,” pegged 1:1 to the token they are lending.

Borrowers can use these liquidity pools for a novel type of extremely speedy loan: flash loans. Flash loans can be used to take advantage of arbitrage opportunities across the crypto ecosystem. They don’t require collateral, but borrowers need to repay their loan in the same transaction (usually in a few seconds). If the loan is not paid up in the same transaction, it is reversed. That is possible because of the speedy nature of DeFi and cryptocurrencies.

In early 2020, AAVE’s price bounced between $30 and $80, according to market data provider CoinMarketCap, hitting a peak of $528 in February of 2021. In May 2021, AAVE hit an all-time high of $638, according to CoinDesk’s historical price data.

Key events and management

The Aave project was founded by entrepreneur Stani Kulechov in 2017 in Switzerland. Aave was called ETHLend until September 2018 when it rebranded.

In 2020, Framework Ventures and Three Arrows Capital invested $3 million into Aave. According to Crunchbase, other investors include Blockchain Capital, Standard Crypto, Ventures and DTC Capital.

Aave launched the Aave Protocol on its network in 2020, making it possible for users to take advantage of the platform on real funds for the first time.

Read less...
Sponsor LogoBuy crypto on a secure, trusted platform.
Cryptoassets are highly volatile and unregulated in some EU countries and the UK. No consumer protection. Tax on profits may apply.

Latest About Aave

View All
CoinDesk - Unknown
Bakkt Mass Delists Tokens Including Aave, Avalanche, Compound, Filecoin, MakerDAO and Uniswap

Intercontinental Exchange-owned Bakkt discontinued its consumer-facing app in February as it shifts away from retail

CoinDesk - Unknown
CoinDesk - Unknown
DeFi Protocol Yearn Finance Impacted in Nearly $11M Exploit That Occurred Via Aave Version 1

The exploiter was able to steal millions of U.S. dollar-pegged stablecoins, data shows.

CoinDesk - Unknown
CoinDesk - Unknown
Bitcoin Drops Below $28K as Options Expire, Traders Borrow WBTC From Aave

WBTC is the largest tokenized version of bitcoin and can be swapped on a 1:1 basis for BTC.

CoinDesk - Unknown
CoinDesk - Unknown
MakerDAO Contributors Propose First Native Liquidity Market Focused on DAI Stablecoin

The proposed Spark Protocol will leverage MakerDAO’s DAI stablecoin and its crypto assets for liquidity, and would be based on lending protocol Aave’s upgraded smart contract system.

CoinDesk - Unknown
Bitcoin (BTC) bounced back after tumbling to a three-month low of less than $25,000 on Tuesday following news that Coinbase (COIN) had been sued by the SEC on allegations of violating federal securities law Read more...

CoinDesk Indices

View All
Top Indices including AaveLogo
Index nameTickerWeight24H

Bitcoin Calculator

Last Updated on 06/07/23 1:31 PM

CoinDesk’s Bitcoin and Cryptocurrency Calculator determines the exchange rates between major fiat currencies and cryptocurrencies – including BTC, BCH, ETH and XRP to USD, EUR, GBP, IDR and NGN – with up to six decimal places of accuracy. Conversion rates are based on CoinDesk’s Bitcoin Price Index and the price indices of other digital assets. World currency prices are based on rates obtained via Open Exchange Rates.

Market Analysis
Social Analysis