$AAVE Aave (AAVE) is a decentralized finance (DeFi) protocol that allows users to lend and borrow cryptocurrencies without needing a central intermediary.
The protocol is built on various blockchain networks including Ethereum, Polygon, and Avalanche among others.
It uses smart contracts to facilitate overcollateralized borrowing and lending, ensuring security and transparency in transactions.
Aave's focus on decentralization user participation and innovative features like flash loans has made it a popular choice in the DeFi space.
However it also faces challenges such as the need for overcollateralization which can be capital inefficient compared to traditional finance systems.