AAVE Coin Price

Aave AAVE

AAVE Coin Price

$101.000
+3.53%
24h High$101.810
24h Low$94.4900
Market Cap$1,412,127,427
24h Volume$203,643,941-12.91%
Circulating Supply
13,981,324 AAVE87%
87%
Total Supply16,000,000
Max Supply16,000,000

Token Address

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Source Code

Aave Chart

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AAVE Coin Price

$101.000
+3.53%
24H Low$94.4900
24H High$101.810

Trading on ARKEN

What is Aave (AAVE) ?

AAVE is the Aave protocol 's native governance token. Holders of the Ethereum-based cryptocurrency may debate and vote on ideas that impact the project 's development. The AAVE token is one of the major DeFi currencies by market cap due to Aave being one of the main decentralized finance protocols. Aave allows Ethereum investors to effortlessly borrow and lend their coins in a decentralized manner. Aave is one of the most popular and successful of these markets, it is so successful that nowadays, its AAVE coin price is listed as high as $376.33 on 18 August 2021. You can check any updated AAVE coin news on their twitter.

Mediums for individuals to borrow and lend their assets are essential components of any modern financial ecosystem. Borrowing allows one to use their capital to complete activities, but lending allows one to receive a consistent and secure return on otherwise idle capital. Cryptocurrency innovators saw the demand for such services and established the so-called money markets.

Aave is an Ethereum-based money market that allows users to borrow and lend a wide range of digital assets, from stablecoins to altcoins. AAVE holders manage the Aave protocol. Without first knowing the underlying Aave protocol, it will be difficult to grasp what the AAVE token is, so let 's get started.

AAVE Coin Price

Based on and driven by its core Ethereum platform, AAVE is becoming one of the most interesting money market tokens in the crypto world. AAVE coin price reached its peak in May 2021, with the listed price of $637.43. You can check AAVE crypto price and AAVE Chart on Arken.

AAVE coin address (BSC): 0xfb6115445bff7b52feb98650c87f44907e58f802
AAVE coin address (Polygon): 0xd6df932a45c0f255f85145f286ea0b292b21c90b
AAVE coin address (Ethereum): 0x7fc66500c84a76ad7e9c93437bfc5ac33e2ddae9

ETHLend

Aave 's beginnings may be traced back to 2017. ETHLend was launched in November 2017 as an Initial Coin Offering (ICO) by Stani Kulechov and a team of engineers. The concept was to allow users to lend and borrow bitcoins from one another by allowing users to publish loan requests and offers.

While ETHLend was a new concept, the network and its token LEND lost traction once the 2018 bear market began. The platform 's main drawbacks were a shortage of liquidity and the difficulty in connecting loan requests to offerings. So, throughout the bad market of 2018 and 2019, the ETHLend team revamped its product, launching Aave at the start of 2020. Kulechov stated on a webcast that the bear market was one of the finest things that could have occurred to ETHLend. This is a reference to the opportunity he and his team were given to reinvent the notion of decentralized cryptocurrency lending, resulting in the creation of Aave.

Aave 's Operation

The new and enhanced Aave is conceptually comparable to ETHLend. Both allow Ethereum users to acquire cryptocurrency loans or make a return on their assets by lending them out. They are, nevertheless, fundamentally distinct. Aave is an algorithmic money market, which means that loans are received from a pool rather than being personally matched to a lender. The interest rate charged is determined by the "utilization rate "of a pool 's assets. When virtually all of the assets in a pool are utilised, the interest rate is set high to attract liquidity suppliers to deposit more capital. If almost none of the assets in a pool are utilised, the interest rate paid is low in order to attract borrowing. Aave also lets customers take out loans in a cryptocurrency other than the one they deposited. For example, a user may deposit Ethereum (ETH), then withdraw stablecoins to deposit into Yearn.finance (YFI) to receive a consistent dividend.

All loans, like ETHLend, are overcollateralized. This implies that if a person wanted to borrow $100 in bitcoin through Aave, they would have to deposit more than that amount. Aave incorporates a liquidation process due to the volatility of cryptocurrency. Your collateral may be liquidated if it falls below the collateralization ratio required by the protocol. It should be noted that in the event of a liquidation, a fee is levied. Before posting collateral, make sure you understand the dangers of depositing cash with Aave.

Other Important Characteristics

Aave 's scope is growing beyond money markets. The website has grown in popularity as a source for DeFi customers to secure short-term loans. More frequently than not, Aave 's money-market pools have far more liquidity than the loans required by borrowers. This idle liquidity can be exploited by people who take out flash loans, which are uncollateralized loans that last only one Ethereum block. A flash loan, in essence, allows a user to borrow a significant sum of bitcoin without providing collateral and subsequently repay the loan in the same transaction (as long as they pay the one-block interest fee).

This enables people with fewer resources to arbitrage and takes advantage of other possibilities - all inside a single blockchain transaction. For example, if Ethereum is trading for 500 USDC on Uniswap and 505 USDC on another decentralized exchange, you may try to arbitrage the price difference by borrowing a big sum of USDC and making rapid trades. Aside from flash loans and other features, Aave is also developing Aavegotchi, a non-fungible token (NFT) game.

For more detail on Aave protocol, read its Whitepaper.

AAVE Coin Price

Why Should You Buy Aave?

AAVE Attractions

AAVE crypto token was also introduced as part of the rebranding. Using the AAVE token on the blockchain provides benefits: users who provide AAVE as collateral earn a reduction on transaction costs, while users who borrow AAVE do not pay a fee. AAVE holders are also granted governance powers over the Aave network based on the quantity of AAVE they own.

aTokens:The passive income function of the Aave protocol is built on the second type of token known as the aToken. aTokens are classified based on the cryptocurrency deposited and burnt upon repayment, and are issued at a 1:1 ratio upon the deposit of assets into Aave 's liquidity pool: investing DAI, for example, results in the production of aDAI. Because aTokens are interest bearing, lenders earn interest when loans are provided from the pool in which they placed their assets. Interest is calculated in real time and sent straight into users 'wallets.

Flash-loans: Aave provides a flash lending service in addition to providing loans in a number of cryptocurrencies. Flash loans leverage the pool 's excess liquidity to allow borrowers to take out uncollateralized loans and subsequently return them as part of the same transaction - all for a 0.09 percent charge. Flash loans are designed to enable borrowers to capitalize on short-term financial opportunities in cryptocurrency markets by exploiting price disparities with rapid trading activity within the time it takes to add a single block to the chain. If a loan is not repaid inside the same block, the transaction is canceled and the funds are refunded.

Rate switching: To combat the volatility of the crypto markets, Aave has also created a rate switching service. Borrowers can use rate switching to either lock in their loan interest rates or continue to use variable rates. In reality, this implies that borrowers who anticipate rising interest rates while borrowing from the Aave liquidity pool might opt to lock in their interest rate.

Aave Use Case

Aave was created to function as a totally safe and decentralized ecosystem of borrowers and lenders, providing access to users worldwide and allowing lenders to earn passive interest income on assets contributed to the liquidity pool. Aave is open source, which increases its capabilities by allowing the creation of a range of third-party apps on the Ethereum network. Aave has collaborated with several developers to date, including:

Axie Infinity: Aave has collaborated with the Ethereum-based game 'Axie Infinity,'which allows users to earn AAVE tokens via skillful gameplay. Aave has also created an Aave NFT in the form of a unique character for the game.

Aavegotchi: Aave has invested in Singaporean Pixelcraft Studios to develop Aavegotchi, a game that allows players to collect Tamagotchi-style NFTs powered by the Aave protocol.

Aave collaborated with Balancer to create the Balancer V2 Asset Manager. The software will allow idle assets in the Balancer liquidity pools to earn Aave network interest. The Asset Manager will act as a link between the networks, facilitating transfers. Start swapping and trading for AAVE today on ARKEN.

Team & Organization
Founders
  • Stani Kulechov
Investors
  • NON-fungible Chan
  • Blockchain Capital
  • Standard Crypto
  • Blockchain.com Ventures
  • Three Arrows Capital
  • Framework Ventures
  • ParaFi Capital
  • DTC Capital

Twitter Update

Historical Data for AAVE Coin Price

Date
Open
HighLow
Close
VolumeMarket Cap
Aug 3, 2022$98.9100$98.9100$94.5700$95.3600$218,092,485$1,330,735,397
Aug 2, 2022$96.0700$99.6400$92.1900$98.9600$255,915,004$1,328,304,286
Aug 1, 2022$95.2500$97.8300$89.4200$96.1600$215,232,395$1,349,974,918
Jul 31, 2022$102.860$102.860$94.6700$94.6700$515,782,861$1,378,965,563
Jul 30, 2022$97.2700$106.400$94.4900$103.270$303,469,880$1,324,568,230
Jul 29, 2022$96.5300$100.110$94.7300$98.7900$327,432,324$1,361,639,582
Jul 28, 2022$99.8900$102.070$94.9900$96.6200$461,044,951$1,397,961,083
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