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What is Aave? (AAVE)

Ang Beginner's Guide


One of a number of emerging DeFi cryptocurrencies, Aave is a decentralized lending system that allows users to lend, borrow and earn interest on crypto assets, all without middlemen. 

Running on the Ethereum blockchain, Aave instead is a system of smart contracts that enables these assets to be managed by a distributed network of computers running its software. 

This means Aave users do not need to trust a particular institution or person to manage their funds. They need only trust that its code will execute as written.

At its core, the Aave software enables the creation of lending pools that enable users to lend or borrow 17 different cryptocurrencies including ETH, BAT and MANA

Like other decentralized lending systems on Ethereum, Aave borrowers must post collateral before they can borrow. Further, they can only borrow up to the value of the collateral they post. 

Borrowers receive funds in the form of a special token known as an aToken, which is pegged to the value of another asset. This token is then encoded so lenders receive interest on deposits

A borrower may post collateral in DAI, for example, and borrow in ETH. This allows a borrower to gain exposure to different cryptocurrencies without owning them outright. 

Aave can also introduce additional features, such as instant loans, and other forms of issuing debt and credit that take advantage of the unique design properties of blockchains.
 

What is aave lend


Sino gumawa ng Aave?

Ang Aave ay isang for-profit na kumpanya na itinatag noong 2017 ni Stani Kulechov at nakabase sa Switzerland. Si Kulechov ay nagsanay ng law sa Helsinki at nagsimula ang Aave habang siya ay estudyante pa dito. 

Ang firm, na orihinal na pinangalanang ETHLend, ay nakakalap ng $16.2 milyon sa isang initial coin offering (ICO) noong 2017, na sa panahong ito ay nakabenta ang 1 bilyong yunit ng AAVE cryptocurrency - orihinal na pinangalanang LEND. 

Ang natitirang 300 milyong mga yunit ng AAVE cryptocurrency ay ginanap para sa koponan ng Aave. 

Ang ETHLend ay naiiba mula sa Aave sa kadahilanang sa halip na pagsamahin ang mga pondo, sinubukan nitong itugma ang mga nagpapahiram at nanghiram sa isang peer-to-peer fashion. Noong 2018 ang ETHLend ay pinalitan ng pangalang Aave, na ibig sabihin ay “multo” sa Finnish. Ang ETHLend ay naging isang subsidiary ng Aave. 

Ang iba pang mga produkto at serbisyo na inihayag noong panahong iyon ay may kasamang trading desk upang hawakan ang mga malalaking trade, isang game studio na nakatuon sa mga blockchain game at isang sistema upang pangasiwaan ang mga pagbabayad. 
 

Paano gumagana ang Aave?


Aave is perhaps best described as a system of lending pools. 

Users deposit funds they wish to lend, which are then collected into a pool. Borrowers may then draw from those pools when they take out a loan. These tokens can be traded or transferred as a lender wishes. 

To facilitate this activity, Aave issues two types of tokens: aTokens, issued to lenders so they can collect interest on deposits, and AAVE tokens, which are the native token of Aave. 

The AAVE cryptocurrency offers holders several advantages. For instance, AAVE borrowers don’t get charged a fee if they take out loans denominated in the token. Also, borrowers who use AAVE as collateral get a discount on fees. 

AAVE owners can further look at loans before they are released to the general public if they pay a fee in AAVE. Borrowers who post AAVE as collateral can also borrow slightly more. 

The data firm Nomics has a more extensive list of AAVE's features. 

Flash Loans

Aave allows certain loans, called “flash loans,” to be instantly issued and settled. These loans require no upfront collateral and happen almost instantly. 

Flash loans take advantage of a feature of all blockchains, which is that transactions are only finalized when a new bundle of transactions, known as a block, is accepted by the network.

Adding each new block takes time. On Bitcoin, that interval is roughly 10 minutes. On Ethereum, it’s 13 seconds. An Aave flash loan therefore takes place in that 13-second period. 

The flash loan works like this: A borrower can request funds from Aave, but they must pay back those funds, and a 0.09% fee, within the same block. If the borrower doesn’t do this, the entire transaction is cancelled, so that no funds were ever borrowed. 

As a result, Aave doesn’t take a risk and neither does the borrower. 

A borrower may wish to use a flash loan to take advantage of trading opportunities or maximize profits from other systems built on Ethereum. It’s possible to swap different cryptocurrencies in an automatic way using flash loans to generate trading profits.  

Note: Flash loans have been combined to execute attacks on lending systems built on Ethereum, sometimes successfully stealing hundreds of thousands of dollars worth of deposits. 


Bakit may value ang AAVE?

Ginampanan ng AAVE ang isang sentral na papel sa pamamahala ng Aave software, na pinapayagan ang mga user na bumoto sa mga pagbabago sa mga panuntunan at patakaran nito. 

Ang grupo ng Aave ay nagtatrabaho sa isang panukala na magbabalangkas nang eksakto paraan kung paano ginagamit ang mga token ng AAVE upang pamahalaan ang system, at ilalabas ito sa kalagitnaan ng 2020. Bilang isang halimbawa, maaaring makaboto ang isang may-ari ng AAVE sa mga rate ng interes para sa ilang mga loan at aspeto kung paano pinamamahalaan ang mga deposito. <

Bukod sa utility na ito, nakukuha ng AAVE ang halaga mula sa may hangganang supply nito, at ang katotohanan na gumagamit ito ng kita mula sa mga fee upang bumili ng AAVE at alisin ang cryptocurrency mula sa sirkulasyon. 

Sa kasalukuyan, 80% ng mga fee na nakolekta ng sistema ng Aave ay ginagamit upang i-burn ang AAVE. Ang natitira ay ginagamit upang mabayaran ang mga nagpapahiram. Ang patuloy na pag-burn ng AAVE ay inaasahan na mabawasan ang supply nito, kaya't itinataas ang presyo ng token kung sakaling manatiling pare-pareho ang demand. 


Bakit kailangan gamitin ang AAVE?

AAVE may be of interest to traders or investors who believe decentralized lending will continue to grow in popularity.  

As of July 2020, the Aave system is among the most active decentralized lending systems on Ethereum, having garnered $158 million in total deposits. Competing lending platforms include Compound and Maker, which have over $600 million in deposits. 

You may also want to use AAVE if you wish to have a say over the rules that govern the Aave system, voting on how fees collected from lending are distributed to AAVE token holders. 

Simulan ang pagbili ng AAVE


Ngayon ay handa ka nang gawin ang susunod na hakbang at bumili ng AAVE!