Decentralized finance (DeFi) promises a future with greater financial inclusivity, total transparency, and accessibility for users. Aave, a DeFi protocol built on the Ethereum blockchain, has emerged as one of the leading platforms in the space.
Jumping into DeFi can be daunting, as most DeFi protocols require varying degrees of expertise in blockchain tech. However, DeFi apps have become much more user-friendly, and Aave is no exception, including non-traders like myself.
DailyCoin is reviewing major DeFi platforms in the space to promote education on decentralized technology. This comprehensive review covers Aave, its functionalities, strengths, and my perspective on the platform.
What Is Aave?
Aave is an open-source, multi-chain decentralized DeFi lending protocol allowing people to borrow crypto. It operates on the Ethereum blockchain, offering services such as compound interest accrual, yield farming, lending, and borrowing of digital assets.
Essentially, the Aave platform is a system of smart contracts that enables these transactions to occur directly between lenders and borrowers without needing an intermediary.
One of the unique aspects of Aave is its use of…
