Two minutes to know a coin: Aave, the 'Finland Blockchain Ghost'
Aave - Finland blockchain ghost, a decentralized lending system, a pawnbroker which runs on the Ethereum Blockchain.
AAVE is the native governance token of the Aave protocol.
The origin of Aave
Aave is a decentralized lending system that allows users to lend, borrow and earn interest on crypto assets, all without middlemen, it is one of the leading decentralized finance protocols in the world.
Aave is Finnish for "ghost," Stani Kulechov is the founder and CEO of Aave. When he discovered Ethereum and its capabilities, he was studying law at the University of Helsinki, and he started exploring how Ethereum could affect decentralized finance (DeFi) systems. After that, the prototype of Aave-ETHLend was launched in November 2017.
ETHLend is a peer-to-peer lending system, and decided to abandon it. Aave switched to a P2C lending platform in 2018.
The funds of Aave
In 2017, Aave issued an ICO (Initial Coin Offering), which raised $16.2 million for them, allowing Aave to hire more developers to focus on improving the protocol. In January 2020, Aave was launched on the ETH mainnet, supporting 16 assets. In July 2020, Aave received a $3 million investment from Three Arrows Capital, Framework Ventures, and Parafi Capital. Since then, Aave has received funding from Blockchain Capital, DTC Capital, Standard Crypto, Blockchain.com Ventures, and Defiance Capital.Aave total value locked (TVL) soared from $300,000 to about $2 billion by the end of 2020.
How does Aave work
Aave is a system of lending pools. Participants deposit funds they wish to lend into a liquidity pool. Borrowers may draw from those pools when they take out a loan. These tokens can be traded or transferred as a lender wishes.
In addition, Aave allows certain loans, called “flash loans”. These loans require no upfront collateral and happen almost instantly.
The price of AAVE
Before October 2020, LEND was priced at $0.02 with supply reduced and the price rebalanced, AAVE priced at $2.In October 2020, 4 months after Avenomics’ launch , AAVE traded at a premium of around $50.
2020 is the most important year for AAVE. The AAVE was the best performing asset in 2020, the price reached the highest point $620.94, generating a 5,000% gain. After that, AAVE has fallen with the cryptocurrency market without exception, the price of back to about $50.