Aave (AAVE)
Aave, a prominent name in the decentralized finance (DeFi) sector, is a lending protocol that empowers users to borrow and lend cryptocurrencies with both stable and variable interest rate options. Originally launched as ETHLend, Aave facilitates decentralized lending by employing smart contracts to manage loans. Founded by Stani Kulechov in 2017, Aave's platform allows users to establish their loan conditions and terms.
History of Aave
Aave was established in 2017 by Stani Kulechov under the name ETHLend, marking its inception as one of the pioneering lending applications on the Ethereum blockchain. On September 18, 2018, the company rebranded to Aave, a term meaning "ghost" in Finnish, symbolizing its aim to create a transparent DeFi infrastructure. A significant milestone was achieved on August 15, 2020, when Aave became the second DeFi protocol to reach a total value locked (TVL) of $1 billion.
Funding
Aave conducted an initial coin offering (ICO) on November 25, 2017, raising $16.2 million by selling one billion AAVE tokens. Additional funding rounds occurred in July 2020, when Aave secured $3 million from Framework Ventures and Three Arrows Capital, and $4.5 million from ParaFi Capital. On October 12, 2020, Aave raised $25 million from investors including Blockchain.com Ventures and others, aiming to bring DeFi closer to institutional use and expand into Asian markets.
Partnerships
| Ticker | AAVE |
| Category | Decentralized Finance (DeFi) |
| Website | https://app.aave.com/ |
| @aave | |
| Telegram | Aavesome |
| https://www.reddit.com/r/Aave_Official | |
| Contract Addresses | |
|---|---|
| ethereum | 0x7f...e9 Copied! |
| optimistic-ethereum | 0x76...78Copied! |
| near-protocol | 7f...arCopied! |
| huobi-token | 0x20...25Copied! |
| polygon-pos | 0xd6...0bCopied! |
| fantom | 0x6a...3bCopied! |
| harmony-shard-0 | 0xcf...0fCopied! |
| arbitrum-one | 0xba...96Copied! |
| avalanche | 0x63...d9Copied! |
| energi | 0xa7...9aCopied! |
| sora | 0x00...36Copied! |
| binance-smart-chain | 0xfb...02Copied! |
Axie Infinity
On November 5, 2020, Aave partnered with Axie Infinity, a game where players collect creatures called "Axies." This collaboration involved distributing Aave tokens to game winners and offering unique Aave NFTs within the game.
Pixelcraft Studios
Aave announced an investment in Pixelcraft Studios, a company developing Aavegotchi, an NFT-based game powered by Aave's protocol. Aavegotchi is governed by AavegotchiDAO through its GHST token.
Balancer
A partnership with Balancer was unveiled on February 23, 2021, to create the first Balancer V2 Asset Manager. This initiative allows idle assets in Balancer pools to earn a yield on Aave, enhancing liquidity and asset management.
Aave protocol
On January 7, 2020, Aave launched its open-source, non-custodial protocol, enabling the creation of money markets. Featuring 16 diverse assets, including stablecoins, the protocol quickly garnered over $5 million in liquidity. Notably, Aave introduced flash loans, allowing developers to borrow liquidity without collateral if repaid within a single transaction. The protocol also allows tokenization of deposits as 'aTokens' which accrue interest in real-time.
AAVE token
Initially released as LEND in 2017, the AAVE token plays a crucial role in the protocol's governance and can be staked for insurance and rewards. A token swap in July 2020 reduced the supply from 1.3 billion LEND to 13 million AAVE, with an additional 3 million allocated to the ecosystem reserve. Governance was transferred to token holders on October 29, 2020, enhancing decentralization.
Distribution
AAVE's ICO in 2017 raised $16.2 million, with a token swap in 2020 reducing supply and introducing governance capabilities. Token distribution was allocated to core development, user experience, management, promotions, and miscellaneous costs.
Governance
AAVE's decentralized governance allows token holders to propose and vote on various protocol improvements and changes. The process involves discussing proposals, receiving community approval, and voting through the governance portal.
Staking
Aave's Safety Module allows users to stake AAVE tokens, providing security to the protocol. In case of liquidity shortfalls, a portion of staked tokens can be auctioned to cover deficits. Stakers receive incentives, including AAVE and protocol fees.
Aave V2
Announced on August 14, 2020, Aave V2 introduced features such as debt tokenization, native credit delegation, and user experience enhancements. It also offered governance updates like vote delegation and became available on the mainnet on December 3, 2020.
Aave V3
Launched on March 16, 2022, Aave V3 expanded across multiple networks, introducing features like cross-chain Portals, high-efficiency mode, and gas optimizations. Aave V3 was deployed on the Ethereum Mainnet on January 7, 2023.
GHO stablecoin
GHO is a decentralized stablecoin within the Aave Protocol, backed by various digital assets. Launched on July 16, 2023, after a governance vote, GHO operates through smart contracts and relies on arbitrage for stability. Users mint GHO by providing collateral, with interest directed to the Aave DAO treasury.
Minting
Participants in Aave Protocol V3 can mint GHO using collateral, with discounts available for those who staked AAVE in the Safety Module. The discount framework is adjustable by the Aave DAO.
GHO on Arbitrum Layer 2
On July 2, 2024, GHO was deployed on Arbitrum, enhancing transaction efficiency and reducing costs through Layer 2 scaling.
Lens Protocol
Launched on February 7, 2022, on the Polygon blockchain, Lens Protocol offers a decentralized social graph, enabling creators to control content and data. It challenges centralized platforms by allowing on-chain social profiles and interactions.
Avara's rebrand and acquisition
On November 16, 2023, Aave rebranded to Avara and acquired Los Feliz Engineering, a web3 startup. This move positions Avara as the parent company of multiple web3 brands, aiming to create an open, decentralized internet. Los Feliz Engineering is known for developing the Ethereum wallet Family and ConnectKit library, reinforcing Avara's commitment to web3 accessibility.