Aave is a Defi based token, most popular in encrypted assests, the total market volume of Ave is $ 656.54 million, and the market size is $ 4.83 billion, Aave is basically the market protocol in which users can deposit their assets and earn interest, Aave supports the following cryptocurrencies (Dai, USDC, TUSD, USDT, sUSD, BUSD, ETH, Lend, BAT, ENJ, REN, KNC, LINK, MANA, MKR, REP, SNX, WBTC, ZRX). The attraction of Ava's lie in its flash loans skills, this will allow its users to make loans without trade and any collateral, the advantage with Aave is the safety of the entire pool fund, if someone borrowed from Aave fund pool and fails to repay the amount, the transaction will automatically be canceled.
Advantages of Aave
- You can stake the Aave tokens and get rewards.
- Aave only has a 0.025% borrowing fee and a 0.09% flash loan fee
- Aave tokens divide into two categories Protocol governance and Money market governance.
- In Protocol governance, you can vote, which is equivalent to 1 coin one vote, in Money market governance you can participate in mortgage rate and risk exposure limit.
- As compare to Compound, Aave supports many types of tokens.
- Aave interest rate is innovative and allows you to swap interest rates.
- Aave has two firewalls that greatly protect the user's assets.
- Aave interest rates are relatively high as compare to other competitors.
- Aave will save you against the black swan type of events and repurchased in reverse according to recognized price by the community and ensure the stability of Aave’s price
Aave has strong security features that benefited its holders for example in order to ensure security the Aave encourages its holders to participate in staking to save against the associated risks, the common risks are Contract vulnerability risk, Liquidity risk, and the oracle risk, the security of pool framework enforces the insufficient collateral mortgage rate and in order to market plummet the oracle can not update the price information
Aave allow you to swap the interest rates, borrowers can choose between fixed interest rate or floating interest rate, the reasons to choose to float interest rate is because of the high fluctuation in the crypto market if borrowers needed to choose the high-yield assets they usually select the fixed interest rate and due to market downturn they often switch to floating interest rates in order to reduce the borrowing costs, the fixed interest rate is not fixed but a variation is always available. If the system detects that the fixed interest rate of a floating-rate currency is lower than 20%, the system will change the mode of interest from fixed to floating interest rate.
How to use
The use of the Aave application is relatively simple, you only need to open this link and connect your Metamask wallets or any other wallet that valid on the Aave platform, you only need to deposit the tokens into the Aave platform in order to gain interest, on the application menu you can find the deposit button, select the appropriate token which you think that lucky for you and deposit in the Aave application, once the transaction is approved by the Aave you will get the message, the change in interest rates can be easily viewed on the control panel, keep investing and best of luck.