$AAVE
Why should you invest in this currency?!
AAVE is a decentralized finance (DeFi) protocol and lending platform. It allows users to lend and borrow cryptocurrencies, and it’s all done using smart contracts, so there’s no need for a middleman. Users can earn interest on the digital assets they lend. Besides being directly connected to the Ethereum ecosystem, AAVE is compatible with both the Avalanche ecosystem and the L2 Polygon network as well.
There are liquidity pools on Avi for several popular cryptocurrencies, such as Tether and DAI. One reason Avi could be a long-term winner is that in addition to its crypto lending capabilities, it has also expanded to include real assets through a partnership with Centrifuge.
Why could Avi be on the list of the best cryptocurrency with a future?
As part of this partnership, Avi has built a Real Assets Marketplace (RWA). It allows companies to tokenize parts of their business. Investors can buy tokens offered by those companies. Token issuers can then borrow stablecoins against their assets.
The risks involved
Arguably, Avi’s biggest weakness lies in its governance model. The Avi Protocol is similar to other cryptocurrency projects in that it deploys a “one token, one vote” approach. The problem with this is that it gives much higher voting power to early investors and whales. On the other hand, the returns are typically lower than most newer DeFi products.
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Dear trader, you have the final decision whether it is worth investing in or not.
