Down the Rabbithole: AAVE, Your Friendly Web3 Defi Ghost

👻 The name (AAVE) comes from the fact that ghosts are transparent — because all information and transactions in DeFi is transparent, available 24-7, for anyone to see at any time.

Stani Kulechov founder AAVE

AAVE is an open-source, community-governed non-custodial liquidity protocol for earning interest on deposits and borrowing assets. Since its Mainnet launch back in January ’20, AAVE has taken a prime spot in decentralized finance. So much that it currently dominates 14.53% of the Defi sector.

💡 AAVE initiated its voyage in 2017 as ETHLend. Back then it was a decentralized peer-to-peer lending platform. ETHLend was later rebranded to AAVE in September 2018.

If we dig more into stats, the entire Defi industry had $683.566M in TVL (during the Mainnet launch of AAVE protocol in January ’20). Currently, it holds approximately $61.29B funds. Such an enormous growth of a sector is usually driven by industry leaders, and in this segment, we bring you Defi Industry’s gem — AAVE.

Source: DefiPulse as of 12-07-21 (Includes stats from AAVE Polygon Market)

Exploring the AAVE Defi Platform

Within the $61.29B valuations of Defi Industry, AAVE contributes $10.81B, with $WETH being the most locked token. Another estimate suggests that TVL of Bitcoin is a higher at 320K BTC (approx $1,70,56,44,00,000) than Ethereum which stands at $5.1M ETH (approx $10,70,42,88,000) in total value locked.

Source: DefiPulse as of 12-07-21 (Includes stats from AAVE Polygon Market)

A peek into $AAVE — Governance and Utility token of AAVE

AAVE has its native token $AAVE (prev $LEND) that incentivizes users who hold the token and carry out transactions on the AAVE portal. Since the launch, $AAVE has touched an all-time high of $658.92 earlier in May ’21. That counts to an ROI of 631.2% for participants of the ETHLend ICO. Check out the current $AAVE token pricing here.

Source: EtherScan.io

AAVE launched on Polygon in late March, and soon after, it has witnessed a steady rise in users holding the $AAVE token. A three-month data from (12th May – 12th July) shows an increase from 79.93K to 85.2K i.e an addition of 5.2K users.

Source: CoinMarketCap

The AAVE Ecosystem

AAVE’s integrations, partnerships, and collaborations currently comprise around 30 companies. Recently in a webinar with Blockworks, Stani Kulechov (founder —AAVE) discussed an expansion to market specifically tailored for institutional usage via Aave Pro. The conversation further revealed that Aave and Fireblocks are launching the first permissioned decentralized liquidity protocol “Aave Pro” in July.

Source: AAVE

Projects powered by AAVE

AAVEGotchi, a Defi-staked Crypto Collectibles game is a notable project powered by AAVE. Furthermore, grants are provided to the potential projects via AAVE Grants DAO.

Aave Grants DAO is a community-led grants program to provide grants to projects, ideas, and events that benefit AAVE and its ecosystem. Currently, it institutes $1 million/quarter for two quarters (May 10 to November 10) for funding grants.

In the first round, grants were offered to L2P.finance, Automated Health Factor Maintenance, Flipside Crypto, Rabbithole, Aave Liquidation Notifier, Aave Analytics and Growth Dashboard, DAO Research Cooperative, and Aave Meme Contest.

Summing Up:

AAVE is simplifying the approach for the community to engage with Decentralized finance and becoming the people’s go-to platform for earning interests from deposits and borrowing assets.

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