In 2017, Stani Kulechov created it under the name ETHLend, and then in 2018, its name was changed to AAVE.
*How does it work?*
1. *Liquidity Pool:* Your money isn’t given to any one person; it goes into a large pool.
2. *Collateral:* To take a loan, you must first deposit more money. For example, to take a $1000 loan, you would need to deposit $1300.
3. *Flash Loan:* This is AAVE’s most special feature. You can take out a loan of millions of dollars without collateral, but the condition is that you must pay it back within the same transaction. This is for developers.
$AAVE
*How does it work?*
1. *Liquidity Pool:* Your money isn’t given to any one person; it goes into a large pool.
2. *Collateral:* To take a loan, you must first deposit more money. For example, to take a $1000 loan, you would need to deposit $1300.
3. *Flash Loan:* This is AAVE’s most special feature. You can take out a loan of millions of dollars without collateral, but the condition is that you must pay it back within the same transaction. This is for developers.
$AAVE
