Why did a Finnish word for “ghost” become the name of a lending protocol?
Definition: In January 2020, the Aave protocol launched on the Ethereum mainnet, shifting lending from peer-to-peer matching to a liquidity pool model.
How it works: In the liquidity pool model, depositors put assets into the pool to earn interest, while borrowers first provide more assets as collateral and then borrow from the pool. Interest rates adjust automatically based on pool utilization.
$AAVE was migrated from the original LEND token at a ratio of 100 to 1. Current price: 128.23.
It’s okay to play it safe. Staying in the market matters more than making a big one-time gain.
Definition: In January 2020, the Aave protocol launched on the Ethereum mainnet, shifting lending from peer-to-peer matching to a liquidity pool model.
How it works: In the liquidity pool model, depositors put assets into the pool to earn interest, while borrowers first provide more assets as collateral and then borrow from the pool. Interest rates adjust automatically based on pool utilization.
$AAVE was migrated from the original LEND token at a ratio of 100 to 1. Current price: 128.23.
It’s okay to play it safe. Staying in the market matters more than making a big one-time gain.