What is Aave ?

Aave allows users to lend and borrow cryptocurrencies without the need for traditional financial intermediaries like banks.

History of Aave

• 2017: ETHLend launches by Stani Kulechov

• November 2017: ICO raises $16.2M, LEND token is issued

• September 2018: Rebrands to Aave, shifts to liquidity pools

• January 2020: Aave V1 launches

  • liquidity pools
  • aTokens
  • Flash loans
  • stable borrow rates

• October 2020: AAVE token replaces LEND (LEND converts to AAVE at 100:1 ratio)

• December 2020: Aave V2 launches

  • Safety module
  • Debt tokenization
  • collateral swap,
  • credit delegation,
  • upgraded flash loans

• March 2022: Aave V3 launches

  cross chain (Portal)

  efficiency,

  supply/borrow cap

  layer 2 support

• July 2023 : Aave native stablecoin GHO launches

• What happens in case of liquidations - Health factor

When a liquidation occurs, up to 50% of the borrower's debt is repaid by a liquidator. A liquidation fee is also levied against the borrower's collateral. Liquidations are permissionless, meaning any participant within the network can initiate the liquidation of an eligible borrow position.

• What are Flash loans
• Latest version v3 - what new is introduced