Aave Protocol Zero to Hero Guide

Marc Zeller
Nov 4, 2019 · 4 min read

Welcome to Aave, the future of Finance,

Decentralized Finance doesn’t require your ID, doesn’t need you to fill paperwork, doesn’t slash your earnings to a herd of middlemen.

It’s just you, your assets and an audited, verified and open-source protocol.

To help you onboard, welcome to our full-fledged Aave Zero to hero Guide.

The Future uh? How does it work?

Aave is a decentralized lending pool protocol, an ecosystem of smart contracts running on top of the Ethereum Blockchain.

Anybody without restriction can interact with these contracts, deposit some assets in a reserve pool of funds and earn interest paid by those willing to borrow some assets from a pool.

Our protocol allows Perpetual Loans, Stable rates, assets Tokenization and enable 16 different Ethereum assets.

Directly interacting with smart-contracts is fun but a tiny bit technical, as a user we invite you to interact with our platform currently on testnet

@stacking_gwei DeFi meme

Let’s Dive into It!

Your Journey Starts here

The Aave protocol is currently on the Kovan Testnet, a separated Ethereum network acting as a safe environment to test things out with assets without any monetary value.

Make sure to select the Kovan Testnet for this tour.

A great opportunity to get used to the platform before our mainnet launch in the next few weeks!

In order to obtain some Kovan ETH you’ll need to request them from this Faucet.

if you don’t have a github account, don’t worry, just ask Marc Zeller on telegram or discord, some say he’s testnet ETH Rich!

@Lemiscate counting all his Kovan ETH

As we’re in a test environment, feel free to “mint” or create as many assets as you want with our own internal faucet!

Click here to access our internal Faucet

Unfortunately, all these incredible features of free-money minting won’t be available on our mainnet release, you’ll have to bring your own assets with you!

Depositing

This video shows an example ETH deposit, in this example, ETH provides a nice 8,8% APR!

You can then watch your capital growth in real-time and that’s one of the best feelings on Earth!

Borrowing

If you wish to use your deposits as collateral to borrow some assets:

Repay your loan

You can repay your loan at any time, your accrued interest is only accounted for the loan duration, our precision is up to monitor every single block of Ethereum (15s on average).

No hidden fees, no paperwork, everything is seamless :

In this example, we paid a bit more than 2 cents on our loan in total loan cost.

Don’t forget that you’re still making money on your deposits so any interest earned on these assets is covering a part of your loan cost!

Interest Mode Switch

Switching from variable to stable rate and the other way around is as easy as a click of a button, check the best current rate or the one that suits your needs and switch anytime!

In this example, we switched from a 13,91% APR variable-rate to a comfy 5,91% APR stable rate. All in a single transaction, your loans are on auto-pilot.

Feel free to join the AAve community on Telegram and on our Discord server.

Anyone willing to understand the inners workings of our protocol can read our Whitepaper and developers willing to dive into our contracts can access our documentation

We’re currently organizing a Hackathon in partnership with Gitcoin grab yourself a share of our 15+k$ Cash prizes!

Marc Zeller

Written by

Asseth

Aave Blog

Aave Blog

Headquartered in London, Aave is made out of a team of innovators with the focus on creating a transparent and open financial infrastructure.

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