What is it?

Lending and borrowing protocol first launched on Ethereum, followed by 6 other networks

About Aave

Aave Protocol is a lending and borrowing protocol deployed across 7 networks (Ethereum, Polygon, Fantom, Avalanche, Arbitrum, Optimism and Harmony). As of 8 April 2022, it has a cumulative TVL of $13.7B across all its networks. It is the largest decentralised lending protocol according to TVL, launched in January 2020. 

On 16 March 2022, Aave launched V3, the third version of its protocol. The latest version of Aave, V3, tackles security, decentralization and capital efficiency issues in the older version. The community greenlit V3 deployments across Polygon, Fantom, Avalanche, Arbitrum, Optimism, and Harmony. Ethereum Mainnet deployment will be determined by the community based on the maturity of the currently deployed markets. 

Aave also has a permissioned version of the DeFi liquidity protocol, Aave Arc, which allows institutions to interact with the Aave Protocol the same way any other user would, but on their own separate and permissioned liquidity pool where every user has been verified.

Products

Tokens and Tokenomics

Aave 

  • Governance voting on
    • Ecosystem incentives  
    • Safety Module 
    • Aave markets 
  • Staking 
    • Fees earned are paid to Aave stakers

Appendix

  1. Token and tokenomics – https://medium.com/aave/aavenomics-eeab650cccc2 
  2. Liquidation – https://docs.aave.com/faq/liquidations 
  3. Safety Module – https://docs.aave.com/aavenomics/safety-module 
  4. Aave v3 doc – https://governance.aave.com/t/introducing-aave-v3/6035
  5. Aave token addresses 
    1. Ethereum Network – 0x7Fc66500c84A76Ad7e9c93437bFc5Ac33E2DDaE9
    2. Polygon Network – 0xd6df932a45c0f255f85145f286ea0b292b21c90b
    3. Avalanche Network – 0x63a72806098Bd3D9520cC43356dD78afe5D386D9