Aave (AAVE) price has declined today.
The price of Aave (AAVE) is $90.99 today with a 24-hour trading volume of $172,879,083.25. This represents a -7.30% price decline in the last 24 hours and a -7.80% price decline in the past 7 days. With a circulating supply of 15 Million AAVE, Aave is valued at a market cap of $1,332,394,447.
What is Aave?
Aave is a decentralized money market protocol where users can lend and borrow cryptocurrency across 20 different assets as collateral.
The protocol has a native token called AAVE, which is also a governance token that lets the community decide the direction of the protocol in a collective manner.
Lenders can earn interest by providing liquidity to the market, while borrowers can borrow by collateralizing their cryptoassets to take out loans from the liquidity pools.
What is the origin and history of Aave?
Aave was previously known as ETHLend when it was founded in November 2017 by Stani Kulechov and has successfully raised $16.2 million through an ICO round. ETHLend was then rebranded to Aave in September 2018.
Its native token, Aave (AAVE), was launched in October 2020 as one of Aave’s initiatives to become self-governed. Following the token’s launch, a 1:100 token migration must be made from the old token.
Fun fact: Aave is a Finnish word translated to “ghost” in English, which illustrates the protocol’s goal to be transparent and an open infrastructure in DeFi.
Who is the founder of Aave?
At the time of writing, the Aave team is made up of 29 individuals with Stani Kulechov as the CEO.
How does the protocol works?
Lenders can earn interest by providing liquidity in the market. There will be two sources of earnings by providing liquidity: (1) the interest rate paid on loans and (2) a percentage of flash loan fees.
Borrowers could opt for the loan to be on a fixed or variable rate, whichever is the best for them.
In the latest v2 release, users can protect themselves from liquidation by swapping their collateral with a different asset.
Lastly, Aave’s main unique product is a “flash loan” where borrowers can take up the loan with zero collateralization. However, the borrower must pay back the loan and any additional interest, plus the fees within the same transaction.
What is the AAVE token?
The token has 3 primary roles within the platform:
How is the token used for governance?
AAVE can be used to vote and decide on the protocol’s upgrade via Aave Improvement Proposals (AIPs).
(Image source: https://docs.aave.com/aavenomics/governance)
How is the token used as an incentive?
AAVE can be staked within the protocol, and the users can earn the protocol’s staking rewards and fees. There are two ways to stake: (1) Stake AAVE and earn rewards in AAVE or (2) Stake Balancer Pool Token (BPT) and earn AAVE, BAL, and trading fees from Balancer.
How is the token used as a mitigation tool?
In the event of associated shortfalls, the staked AAVE will act as insurance to cover the deficit. For example, your staked assets will be slashed up to 30% when Aave protocol is in a deficit state for the liquidity providers.
Who has audited Aave?
Since 2019, Aave has been audited 13 times and they were done by Trail of Bits, Open Zeppelin, Consensys Diligence, Certik, Peckshield, and Certora.
Is there a difference between Version 1 and Version 2?
Aave’s second iteration has introduced several interesting new features.
One of the notable ones is the collateral swap feature. This allows users to swap their collateral to another supported asset at any given time. It is a great feature, especially for those who want to avoid liquidation.
Another feature is loan repayment with collateral, enabling the borrowers to close their loan positions by paying directly with their collateral in just one transaction.
Do I need to do anything to migrate from Version 1 to Version 2?
Aave v2 is just a protocol upgrade and its native token won’t be affected by the changes. Hence, if you are holding AAVE, you do not need to do anything.
Additionally, if you have loan positions on Aave v1, you do not need to close them either. Aave released a migration tool to help you migrate your positions. To know more on how to migrate your loan positions, kindly refer to this blog post.
Can I long or short Aave?
Yes, you can long or short Aave via perpetual swap or futures such as Binance Futures, and OKX These derivative exchanges are not formally regulated and can provide even up to 125x leverage. Derivative contracts are high-risk products, and you might want to understand what you are doing before participating in them.
Where can you buy Aave?
AAVE tokens can be traded on centralized crypto exchanges. The most popular exchange to buy and trade Aave is DigiFinex, where the most active trading pair AAVE/USDT has a trading volume of $3,211,459.62 in the last 24 hours. Other popular options include HitBTC and XT.COM.
What is the daily trading volume of Aave (AAVE)?
The trading volume of Aave (AAVE) is $172,951,587.34 in the last 24 hours, representing a 38.10% increase from one day ago and signalling a recent rise in market activity.
What is the all-time high for Aave (AAVE)?
The highest price paid for Aave (AAVE) is $661.69, which was recorded on May 18, 2021 (over 2 years). Comparatively, the current price is -86.30% lower than the all-time high price.
What is the all-time low for Aave (AAVE)?
The lowest price paid for Aave (AAVE) is $26.02, which was recorded on Nov 05, 2020 (about 3 years). Comparatively, the current price is 248.20% higher than the all-time low price.
What is the market cap of Aave (AAVE)?
Market capitalization of Aave (AAVE) is $1,332,394,447 and is ranked #53 on CoinGecko today. Market cap is measured by multiplying token price with the circulating supply of AAVE tokens (15 Million tokens are tradable on the market today).
What is the fully diluted valuation of Aave (AAVE)?
The fully diluted valuation (FDV) of Aave (AAVE) is $1,453,487,311. This is a statistical representation of the maximum market cap, assuming the maximum number of 16 Million AAVE tokens are in circulation today. Depending on how the emission schedule of AAVE tokens are designed, it might take multiple years before FDV is realized.
How does the price performance of Aave compare against its peers?
With a price decline of -7.70% in the last 7 days, Aave (AAVE) is underperforming the global cryptocurrency market which is up 0.40%, while underperforming when compared to similar Polygon Ecosystem cryptocurrencies which are up 0.00%.
What is the market sentiment of Aave today?
The community is bullish as more than 83% of users are feeling good about Aave (AAVE) today.
How to add Aave (AAVE) to MetaMask?
Adding Aave (AAVE) to MetaMask allows you to view your token holdings, trade on decentralized exchanges, and more. To add them, you’ll need to import AAVE as a token. You can copy AAVE’s contract address (0x7fc66500c84a76ad7e9c93437bfc5ac33e2ddae9) and import it manually, or if you've installed MetaMask's chrome extension, add AAVE to MetaMask with one click on CoinGecko.
Add AAVE to MetaMask.