AAVE/LEND and the decentralised bank
Aave is an open-source decentralised finance ("defi") lending protocol that allows users to earn interest on deposits and borrow a whole host of different cryptocurrencies. It was built on the ethereum blockchain and is completely decentralized. This makes it quite different from the other centralized lending platforms as it is not controlled by any one entity. Lending is controlled on the blockchain through the use of smart contracts.
Aave was actually one of the first ethereum based lending platforms on the market when it launched as ETHLend back in 2017. Aave have expanded beyond a simple money market protocol.
Aave transferred ownership of the protocol over to a “genesis governance” built and approved by token holders. The platform’s previous native lend (LEND) token was swapped for the new Aave token.
Aave has embraced the defi revolution with open arms. Aave offers support for 17 different cryptocurrency assets. They've also expanded beyond a simple money market.
As one of its main features, Aave introduced the concept of “Flash Loans”, which allows users to instantly borrow money without any required collateral. The safety of funds in the reserve pool is guaranteed by Aave’s ability to reverse the transactions and undo all the actions in case the liquidity is not returned to the pool on time. As per Aave’s statements, this functionality is designed for developers and not technically advanced users.
Aave interacts with Uniswap, which is a secondary money market that acts as a liquidity provider. Uniswap also allows token holders to leverage their Lend/Aave protocol tokens as collateral in order to borrow funds.
There are several exchanges where you can purchase and trade Aave:
1. Binance Exchange - you can purchase Aave on Binance using your mobile phone or desktop. You only need to follow the step as instructed. You can also receive a 25% discount on trading fees using Binance Coin (BNB) instead of cash. Use the link above for a bonus 10% discount
2. CoinBase - this is one of the most popular platforms because it is easy to use on your phone or tablet and is available in most countries. On CoinBase you will also find many of the top 100 coins. CoinBase will send email confirmations for another layer of security if you are using a PC. CoinBase also can be used on your phone. When you join CoinBase you can get AUD 13.84 in free Bitcoin when you buy or sell AUD 138.41 or more, by using the above link.
3. Crypto.com MCO/CRO - this is a favourite for many reasons, as you can earn interest on a wide variety of coins, as well as apply for a crypto debit card. This operates similar to a pre-paid Visa card, where you top up before use, however, you can choose to top up with cash or crypto. For example, you can transfer Bitcoin (BTC) to the card and spend it like cash, or let it sit in the account and earn interest. Rates of interest on deposits vary from 2% up to 10% or more. New investors may receive up to $50 when using the above link to create a new account.
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