Aave Reviewed

An Aave review has revealed that Aave is large and promising cryptocurrency project that is open-source and features a non-custodial liquidity protocol allowing for interest to be earned on deposits and loans.

Choose your quick section of our Aave review below.

A Quick Overview of our Aave Review:

Live Price

Who is Aave?

Aave refers to a large and promising cryptocurrency project that is open-source and features a non-custodial liquidity protocol allowing for interest to be earned on deposits and loans. Aave is one of the largest in the cryptocurrency market which fluctuates like any other digital asset.

Key Features and Takeaways of Aave

Aave is fast-becoming a large DeFi (Decentralised Finance) project and offers the following key features and takeaways:

• Aave is an open-source DeFi protocol which is used for crypto lending and borrowing.
• Aave was built on the Ethereum network.
• Aave has evolved from a Peer-to-Peer platform into a full pool-based protocol.
• The name is a Finnish word that means “ghost” in English which would imply that Aave is completely decentralised.
• Unlike many other new start-ups and projects that have low liquidity, Aave came with full force when it was launched, bringing a substantial amount of liquidity to the platform.
• The Aave protocol does not require a “Know Your Client” or KYC process and the process involved with lending/borrowing is carried out through smart contracts.
• Aave offers for the trading/swapping of assets on the Aave network, allowing borrowers to avoid liquidation if their collateral depreciates.
• Users are issued with aToken when they deposit their assets on Aave, and these can be used for staking on Aave.
• Borrowers are provided with debt accruing tokens that can be traded on a DEX.
• In some cases, Aave lowers the transaction costs up to 50% through Gas Token Support.
• Lenders are provided with a credit delegation, allowing them to lend aTokens to borrowers, earning them more interest.

Mining

On April 24, a governance vote approved the liquidity mining program for Aave with 2,200 staked AAVE coins which will be distributed to lenders as well as borrowers until July 15, after which the program will be reviewed again.

Unlike other cryptocurrency mining operations, that of AAVE works in a different way. Miners do not need to possess specifically designed machines that consume significant amounts of power. Users are instead rewarded for bringing and providing liquidity to the platform.

Users are rewarded with liquidity mining bonuses when they borrow stablecoins with governance token rewards of more than 20%. As a result of this, users can create individual money markets to facilitate improved loan services where both borrowers and lenders are concerned.

Users who deposit stablecoins into the Aave protocol can collect an additional yield from 4.78% up to 13.49% which will be added to their existing daily earnings in the form of staked AAVE. Wrapped Bitcoin (WBTC) deposits are also set to earn an additional 4.59% while deposits in Ether will earn 2.11%.

Even though these rewards are substantial, there are stablecoin borrowers who are earning rewards that range from 5.15% up to 22.05%. There are more than two thirds of the rewards that have been designated to USD as well as USDT markets. The remainder is set to be distributed among DAI, ETH, WBTC, and GUSD Markets.

However, 40% of the total value locked of Aave in version one of the platform, the second version rewards campaign will aim to help users migrate towards the newer protocol. This will be done by introducing liquidity mining rewards on the second version.

Pros and Cons

Transaction Fees

Should you buy Aave?

Aave is one of the major cryptocurrencies that is constantly seeing promise and allows for holders of these coins to do the following:

• Carry out various DeFi transactions which include borrowing, lending, and earning interest on deposits on the Aave platform.
• Vote on Aave Improvement Proposals, or AIPs, in addition to earning protocol fees relating to the protection of the sight against borrowers who are malicious.

There are many reasons why crypto investors and traders are showing increased interest in AAVE, and one is that Aave tries to deal with pressing challenges that are involved with conventional lending services.

The main purpose of DeFi is to transform centralised financial services in a manner that is decentralised. Banks lend funds and earn interest in a typical loan scenario and even if you lend your money, you will never gain access to profitable income.

However, with Aave, this is changed as anyone can lend their crypto to others without trust or consent. The interest which is gained by these loans is paid to the lender’s network wallet directly.

The AAVE coin is one of the top 100 cryptocurrencies in the entire market and despite seeing some bad graph curves in the past, future predictions show optimism and promise.

According to official sources, Aave is an ideal investment opportunity for long-term investors. The price prediction on AAVE is 18 982.45 ZAR at the end of December, showing growth of more than 158%.

For 2025, it is estimated that AAVE will come in at 33 920.96 ZAR, 48 780.08 ZAR by 2025, and 63 622.76 ZAR by 2025. These predictions are based on past behaviour of AAVE in the market and although not a definite figure, shows a substantial amount of promise to investors and traders alike.

However, it must be noted that the complete and precise price on AAVE cannot be pinned down as nobody will know any of the prices for other cryptocurrencies. The same can be said for any other market in the world.

The bottom-line is that Aave is one of the most exciting projects in the DeFi industry and even though it already has a fierce competitor, Compound, there are special aspects that make each project distinctive and between the two, Aave also has a larger variety of tokens on sale.

New interest rates along with regulations are beneficial to the goals towards which Aave is working. In addition to this, Aave also offers fantastic benefits for first-time users by offering them with lucrative interest rates based on their deposits.

How to buy Aave (AAVE)

Step 1 – Open an account on Binance

Navigate to the official Binance website and select “Register Now”. You will be redirected to a “Create a Free Account” where you can either register with your email address or your mobile number.

You can enter your email address and user-selected password or select the “Mobile” option at the top of the form. Select your country code and enter your mobile number along with your user-selected password.

Once you have completed the necessary fields, you can read and accept the Terms of Service before selecting “Create an Account”.

You may have to complete a Security Verification that will confirm that you are not a robot. Next, there is an account verification. During this, a 6-digit verification code is sent to the email address or mobile number that you provided. The code is only valid for 30 minutes and must be entered in the blocks provided on this page.

Once the verification is completed, a welcome page will load, and you will be given the options through which you can either trade or purchase cryptocurrency. If you are new to crypto, you can visit the “Learn More” Section at the bottom of the page.

Step 2 – Secure account with two-factor verification

On the trader’s dashboard, select the option to secure your account with two-factor verification. Even though phone verification is a secure option, the most preferred and secured method is to make use of the Google Authenticator.

Once downloaded and installed, either scan the QR code or type in the one-time, unique code provided to add your Binance account credentials onto Google Authenticator.

Once completed, write down the back up key provided to recover your account on Google Authenticator in case you lose or misplace it. In the final step, enter the 6-digit code which you will receive on your registered email address along with the Google verification code.

Step 3 – Deposit funds

Binance allows for the purchase of cryptocurrencies via fiat deposits as well as cryptos. Deposits can be accessed from the following locations:

• The “Welcome to Binance” banner.
• Hovering over “Buy Crypto” at the top of the web page and selecting your preferred method.
• Selecting “Deposit” on the “balance details” section on your traders dashboard.

Once you have selected the option to “Deposit”, you can select whether you wish to deposit cryptocurrencies from another wallet, or whether you want to make a fiat deposit.

For Crypto deposits, follow these steps:

• Select your coin between Bitcoin, Ethereum, TetherUS, BNB, or EOS.
• Select the network to be used between BEP2, BEP20 (BSC), ERC20, or TRC20 and accept the conditions for using the network.
• Copy the address or scan the address QR code from the wallet where you are depositing and follow further prompts. Kindly note that each network has its own set of network confirmations between 1 up to 15 confirmations before the deposit will be done.

For deposits in Fiat currencies, follow these steps:

• Select the deposit currency from the dropdown list. To gain access to more currencies, it is necessary to verify your identity and face.
• Select the payment method to be used, depending on the currency chosen.
• Enter the deposit amount and any other details. Kindly note that the transaction fee will be displayed along with the balance after this is subtracted.
• Continue with the deposit.

Step 4 – Start Trading

Once you have completed your deposit, you can navigate to the “Markets” section at the top of the page to view the available cryptocurrencies. From here, you can buy, sell, and trade currencies at competitive prices.

AAVE can be traded through the following ways:

• On BNB Markets under AAVE/BNB.
• On BTC Markets under AAVE/BTC.
• On ALTS Markets under AAVE/ETH.
• On FIAT Markets under AAVEUP/USDT and AAVEDOWN/USDT without leverage.
• On FIAT Markets with x5 leverage under AAVE/USDT and AAVE/BUSD.
• As an ETF under AAVEUP/USDT and AAVEDOWN/USDT.

Frequently Asked Questions

When was Aave first launched?

Aave was first developed in 2018 by Stani Kulechov out of the previous project ETHLend, with the former a crypto lending platform that was established in 2017, having raised more than 8.5 million ZAR worth of Ether in exchange for 1 billion LEND tokens.

Who founded Aave?

Stani Kulechov, who was also the founder of the project from which Aave originated, ETHLend.

What is “ICO”?

It is Initial Coin Offering that, unlike an IPO, does not mean that those who invest in the cryptocurrency will have an ownership stake of the company that they provide funds to.

When was Aave’s ICO and how much did it raise?

Aave raised 231 million ZAR in ICO as a member of ETHLend.

Is Aave legit?

Yes, Aave is legit. It is a decentralised, open-source, and non-custodial money market protocol that runs on the Ethereum blockchain, allowing users to provide liquidity to lending pools and gain interest through this.

What is Aave’s total supply?

Aave relies on LEND which has a supply of 1.3 billion.

What is the purpose of Aave?

Aave is a money market protocol that allows users to borrow and lend assets on the Decentralised Finance market. Lenders of AAVE can use their capital to fund projects while borrowers can gain interest on tokenised deposits long-term.

On which blockchain is Aave based?

Aave is based on the Ethereum blockchain.

Does Aave work with smart contracts?

Yes, Aave allows lenders to make digital deposits into liquidity pools to smart contracts on the Ethereum blockchain and in exchange, they receive aTokens which can be redeemed for the token which was deposited plus interest.

Does Aave have potential to become more valuable?

Yes, AAVE is currently one of the top 100 cryptocurrencies and based on past behaviour, has a lot of potential for increases in value in the next few years, making it a worthwhile investment.