Aave

Aave is a non-custodial lending protocol where users can lend crypto assets and borrow against collateral without an intermediary. The protocol first ran on Ethereum; today, alongside Ethereum, it operates separate markets on many EVM-compatible networks such as Arbitrum, Base, Avalanche and Polygon. AAVE is the protocol's governance token.

Depositors supply assets to liquidity pools and earn interest that varies with each pool's utilization rate, while borrowers can borrow up to a certain proportion of the collateral they post. If the value of the collateral falls below a threshold, the position is liquidated. Through Aave DAO, AAVE holders submit and vote on proposals covering matters such as risk parameters, new markets and use of the treasury; the token can also be staked to take part in the protocol's safety mechanism. The Aave community also issues a stablecoin called GHO.

Key factors that can affect the AAVE price include deposit and borrowing volumes in the protocol, smart contract and price-feed risks, competing lending platforms and regulatory approaches to decentralized finance. The Aave page on Lzzo.com shows the price from AAVE/USDT trading on Binance converted into dollars at Coinbase Exchange's USDT/USD rate; the chart follows this US dollar-based series.