The Aave Protocol enables its users to borrow or lend cryptocurrencies while using other tokens as collateral. In this network, lenders contribute to a single pool where users can borrow from. The interest rate and loan amount is then determined by the liquidity of the pool and the collateral used by the borrowers. The AAVE token serves as the governance token of the entire protocol and is used by the community to vote for improvement proposals.
The name of the protocol and token comes from the Finnish word for “ghost”. This is used in order to represent the transparency of the protocol and of DeFi (decentralized platforms) in general.
Coins.ph has recently supported the AAVE token along with UNI and MKR to our continuously growing roster of ERC-20 tokens.
For more information on ERC-20 tokens, you may visit our FAQ section here.