Can Aave make money from a Liquidity Protocol? — Market Mad House

Aave (AAVE) is yet another decentralized liquidity that facilitates borrowing or lending while enabling depositors to earn passive income.

As a liquidity protocol, Aave allows users to earn interest and borrow assets with liquidity Aave Markets generate. Each market is a trading platform for a specific cryptocurrency or DAO such as Ethereum (ETH) or Harmony. They claim Aave had $21.447 billion in liquidity locked in Aave across seven networks or 13 markets on 11 April 2022.