What is Aave?
If you’ve been wondering what is Aave, you’re not alone. A few years ago, the idea of an open-source, decentralized lending platform seemed out of reach, but that has all changed now. The Aave Protocol is set to go live on the mainnet on January 8 and has changed the company’s strategy from P2P lending to a pool-based system. The company also plans to upgrade its internal economics and focus on security. The exchange will start trading LEND for AAVE tokens in September 2020. By then, the Aave protocol is expected to feature credit delegation, gas optimization, and liquidity mining.
Your Privacy Is Protected
Another major difference between Aave and other cryptocurrency exchanges is its open-source platform. Users can purchase AAVE with fiat currencies or cryptocurrencies on popular crypto exchanges like Coinbase or Binance. Before you can start using Aave, however, you’ll have to complete a verification process, which may require a proof of identity. Otherwise, your account will not be validated. However, with a decentralized platform, your privacy is protected and you won’t have to worry about hackers taking your funds.
While AAVE is an open-source protocol, it also has disadvantages. Some investors may turn away from Aave because of its high risk of over-collateralization. However, these disadvantages aren’t significant in the grand scheme of things. And it’s a great way to learn about blockchain. If you’re interested in learning more about the technology, I highly recommend you take a course on blockchain.