AAVE — Better Than Your Local Bank

Introduction

While learning about how blockchain ecosystems can be the building blocks of transparent, easy to use, permissionless, efficient businesses — one of the platforms that had an instant impact on me, and one that I would encourage anyone to explore in order to get a feeler of what blockchain technology can really do, is AAVE. Before we dive in to what AAVE exactly is and how it functions– there are a few core concepts that we should get out of the way.

Traditional Finance

Before diving into the specifics of AAVE — let’s understand the fundamental roles of a bank — and how they are currently carried out.

AAVE

AAVE is a permissionless lending and borrowing protocol that runs on the Ethereum blockchain, as well as on the Polygon network — a scaling layer for Ethereum.

The Metrics

AAVE Token

Source: tokenterminal.com
source: tokenterminal.com
source: tokenterminal.com