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What is AAVE and what are its advantages?

by Financial Economy

Aave (AAVE) cryptocurrency is an open source project written on ERC-20, which formed the basis of the Etheruem blockchain network in 2017. AAVE tokens were previously released as LEND tokens, and in October 2020, 100 LEND holders changed their token name by giving 1 AAVE. In addition, during this transition, they also generated 3 million extra AAVE tokens for different areas of use. Information about ” What is AAVE and what are its advantages?” is in rest of the article. You can browse here for information of dogecoin.

What is AAVE and what are its advantages?

Aave (AAVE) is a DeFi project. DeFi is a term that contains many projects. In the literal sense, DeFi means “Decentralized Finance”. It is the general term given to projects that change the traditional understanding of finance, which is central, and aim to make all the advantages of finance decentralized and much more easily accessible.

As Aave (AAVE) DeFi, it enables its users to lend to its users decentralized, without intermediaries and at fixed interest rates. Aave (AAVE) aims to be an international lending institution by preventing users from being affected by fixed interest rates and changing interest rates between countries.

With the Aave (AAVE) system, wherever you are in the world, it enables you to get loans regardless of the interest rates determined by your country. Although the interest rate to be applied when the loan is given depends on the supply-demand balance, it is generally fixed. Aave (AAVE) always maintains liquidity reserves to enable lenders to withdraw their assets. One of the biggest differences of the Aave (AAVE) project is that the borrowing interest rates are fixed.

How is Aave mining done?

Aave is not a cryptocurrency that can be mined. All Aave (AAVE) balance is offered at regular intervals. The method of earning Aave is the lender in the system. You can earn a certain rate of interest from the amount of your loan.

What is LEND?

LEND, the crypto currency of the Aave project, is used for all necessary expenses when you are included in this system. The reward is given as LEND according to the interest income of the token you lend.

Information about the crypto currency: https://en.wikipedia.org/wiki/Cryptocurrency

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