Invest in Aave, Another Passive Income

Sajjad Hussain
May 27 · 3 min read
Photo by Blogging Guide on Unsplash

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

  1. You can stake the Aave tokens and get rewards.

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

Selling Point

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.

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