Lend or Borrow Crypto Instantly Using Aave Decentralized Lending Platform

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Unknown Speaker  0:01  

Welcome to the New To Crypto podcast designed to guide you through the crypto landscape with pinpoint accuracy created for the new and intermediate crypto investor. Join your host Crypto Travels Michael as he takes you through the different facets of getting started and succeeding in your crypto journey. New to crypto podcast brings you new episodes daily Monday through Friday with surprise bonus episodes sometimes on the weekend. Let me ask you, are you new to crypto don’t know where to start? Are you more experienced but have questions? Then you’re in the right place. This podcast is designed for you, coming at you from the training center in the lifestyle design studio. Here’s your host Crypto Travels Michael.

 

Michael  0:51  

Welcome to today’s show. I’ll tell you I have an interesting episode for you today. I’m happy to report that this podcast has now been heard in 80 countries and 607 cities around the world. And the top city with the most listens of all the 607 cities around the world is Sydney Australia. Actually, 11% of all the podcast listens come from Australia. So Sydney, in New South Wales, is number one in terms of volume, and number five on the list is Brisbane. I used to live in Brizzy, actually many years ago. And after Brisbane is Melbourne in Victoria, Australia. So I welcome all the Australian listeners. And the second most popular city is Singapore. So I welcome everyone from Singapore and anywhere in the world that you’re in. And this has been an exciting time with growing this podcast, and I just look forward to two more as we grow this. So today’s episode is all about Aave. And I want to unpack and break down, Aave, because if you’re not familiar with it, Aave is doing some pretty awesome things in the crypto industry. So what is Aave. Aave is a decentralized finance protocol. And it allows people to lend and borrow crypto. And you can do this instantly in real time, very quickly. So lenders earn interest by depositing digital assets into specially created liquidity pools. And borrowers can then use that crypto, their crypto, as collateral to take out a quick loan using the liquidity. And people have asked, where does the word Aave come from? Well, the founders who created it, it actually means ghost in the Finnish language. So who created Aave? Aave was created in 2017 by Stani Kulechov, who’s actually based in Switzerland and has a background and he was trained in law in Helsinki. So let’s break down and unpack a little bit more about Aave. It’s one of the emerging DeFi cryptocurrencies. Another way to mention and break down what Aave is… is to say that it’s a decentralized lending system that allows users to lend and borrow and earn interest on their crypto assets. And there’s no middlemen, no middle people organization in the middle, you actually do this directly with the Aave platform. 

 

So it runs on the Ethereum blockchain. And Aave is a system of smart contracts that enables these assets to be managed by a distributed network of computers running it software. So this means Aave users do not need to trust a particular institution or a person or anyone in the middle. They only trust the code that executes. So right now, the Aave software enables the creation of lending pools that enables users to lend or borrow at least 17 Different cryptocurrencies, like other decentralized lending systems on Ethereum have a borrowers must post collateral before they can borrow, then they can only borrow up to a certain value of the collateral that they post, or a certain LTV, loan to value. So borrowers receive funds in the form of a special token known as an A token, and this is pegged to the value of another asset. And this token is then encoded, so lenders receive interest on deposits. A borrower can also post collateral in DAI, for example, and borrow in ETH. What they’re doing with Aave is actually really exciting. So if you head over to masari.io, you’ll see that Aave is currently trading it just over $381 per token, they also have a native token, and it’s A-A-V-E so if you head over to DeFiLama.com and Look under Aave, you’ll see that the total value locked is 13.82 billion. So this is also DeFilama is actually and masari are two tools that I use when I’m researching projects as well. As always, this episode is not financial advice, I highly recommend you do your own due diligence and research. But I’m definitely here to break down and unpack what these projects are, and all about.

 

 Also, the Aave website is Aave.com. It’s Aave.com. And I’m going to have it on the new to crypto site all the links. And if you actually want to use the lending platform, you can access it from Aave.com, there’s actually a button that says Enter app. So Aave is like a system of lending pools. And you can choose to lend your crypto for an ROI, as they say return on investment. Or you can choose to borrow crypto. But I can tell you that Aave has really grown in popularity. And it’s one of the top peer to peer lending platforms on Ethereum. And I just want to say that if you liked today’s episode, and you like the podcast, it’s growing. The site is going to launch soon. So be sure to like and subscribe to the podcast. And you can also email into the show. I’d love to hear your feedback if there’s a specific project that you would like to hear an episode about or if you have a question crypto, the email into the show his show@newtocrypto.io show@newtocrypto.io. And I’d love to hear from everyone. this pretty much concludes today’s episode. It was a brief intro about Aave and I’ll be here with you tomorrow as you chime in and tune into tomorrow’s episode. Until then, make it a great day.

 

Unknown Speaker  6:53  

Thanks for tuning in to New To Crypto podcast. If you liked the episode, be sure to follow and subscribe. You can listen to every episode on all major platforms. Have an interest in being on the show or want advertising reach out at newtocrypto.io. Head over to our site newtocrypto.io to access the resources mentioned in each episode. Until next time, remember to navigate the crypto landscape with pinpoint accuracy. 

By: cryptotravelsmichael
0

Table of Contents

What Is Aave? 

Stani Kulechov launched Aave, a for-profit corporation based in Switzerland, in 2017. Kulechov received his legal education in Helsinki and founded Aave while still a student.

Aave was previously known as ETHLend. ETHLend differed from Aave in that it attempted to link lenders and borrowers on a peer-to-peer basis rather than pooling funds. ETHLend was renamed Aave in 2018, which is Finnish for the word ‘ghost.’ Aave acquired ETHLend and made it a subsidiary.

Aave is a decentralized finance (DeFi) technology that allows people to lend and borrow cryptocurrencies without going via a middleman. They gain interest when they lend and pay interest when they borrow.

The Ethereum network serves as the foundation for Aave. ERC20 tokens, like all other tokens on the network, use the Ethereum blockchain to perform transactions.

A decentralized autonomous organization, or DAO, is used in the protocol itself. This means that it is run and governed by the people who own AAVE tokens and vote with them.

What Is Aave Bringing To The Table? 

Borrowers on Aave must put up collateral before they may get a loan. Furthermore, they are only permitted to borrow up to the value of the collateral they have posted.

Borrowers are given money in the form of an aToken, which is a specific token tied to the value of another asset. This token is then encoded so that depositors can earn interest on their money.

A borrower could, for instance, post collateral in DAI and borrow in ETH. This enables a borrower to obtain exposure to various cryptocurrencies without really holding them.

Aave can also add new features like fast loans and other ways of issuing debt and credit that take advantage of blockchains’ innovative qualities.

The Aave software, at its base, allows users to create lending pools in which they can lend or borrow sixteen different cryptocurrencies, including ETH.

The AAVE coin provides a number of benefits to its users. Borrowers who take out loans denominated in the token, for example, are not charged a fee. Borrowers who utilize AAVE as collateral also receive a fee reduction.

If AAVE owners pay a fee in AAVE, they can look at loans before they are disclosed to the general public. Borrowers who put up AAVE as collateral can get a little more money.

AAVE’s worth is derived from its limited supply and the fact that fees are used to purchase AAVE and remove it from circulation.

So Aave is like a system of lending pools, and you can choose to lend your crypto for an ROI, as they say return on investment, or you can choose to borrow crypto. I can tell you that Aave has really grown in popularity and it's one of the top peer to peer lending platforms on Ethereum.

- Crypto Travels Michael

Here's What We Discussed in Detail in This Interview

  • What is Aave
  • Features fo Aave
  • Founders of Aave
  • The AAVE token

Killer Resources

HOW TO REACH TO CRYPTO TRAVELS MICHAEL

Final Thoughts

One of Aave’s long-term goals is to enable anyone to create and implement their own money market on the Ethereum blockchain.

To guarantee that market builders create their markets in compliance with the Aave Risk Policies, Aave has established a set of guidelines.

Traders and investors that believe decentralized lending will continue to gain popularity may be interested in AAVE.

You may also want to utilize AAVE if you want to vote on how fees collected from loans are divided to AAVE token holders, as well as have a say in the laws that govern the Aave system.

The New to Crypto Podcast is designed to guide you through the crypto landscape with pinpoint accuracy. New episodes are added daily. Be sure to subscribe to the podcast and listen to all of the episodes to help you in your cryptocurrency journey.

I’d love to hear from you! Email me at show@newtocrypto.io and let’s chat.

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Helping those to navigate the crypto landscape with pinpoint accuracy.

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