$AAVE - The Decentralized Lending Protocol
Let's break down a simple concept:
Project: Aave
Sector: Decentralized Finance (DeFi)
What it does: Aave is a non-custodial money market protocol. Users can deposit crypto to earn interest (become a lender) or use their crypto as collateral to borrow other assets. Its key innovations include "flash loans" (uncollateralized loans repaid in one transaction) and the ability for borrowers to switch between fixed and variable interest rates
Why it matters: It's a foundational DeFi "blue chip" for generating yield. The AAVE token itself provides holders with discounted fees on the platform and voting rights in its governance. A critical health metric is its Total Value Locked (TVL), which stands at over $32.9 billion, showing massive trust and capital locked in its smart contracts.
Educational, not advice
