🏦 AAVE
AAVE scorecard with live price, tokenomics analysis, and DeFi insights. Research Aave's lending protocol with $20B+ TVL, flash loans innovation, Safety Module staking, and multi-chain deployment. Includes governance token analysis and links to CoinGecko and DeFiLlama.
Aave is a decentralized finance (DeFi) protocol that enables users to lend and borrow cryptocurrencies in a permissionless, non-custodial manner without relying on intermediaries like banks. It operates primarily on the Ethereum blockchain but has expanded to multiple networks, allowing participants to supply assets to liquidity pools and earn interest, or borrow against collateral with variable or stable interest rates.
Aave has become one of the largest DeFi platforms by total value locked (TVL), promoting financial inclusion by making lending and borrowing accessible globally via a wallet connection. However, like all DeFi protocols, it carries risks such as smart contract vulnerabilities, market volatility, and liquidation events. Always conduct your own research before using it.
🔍 Tokenomics:
📚 The Scholar's Assessment
AAVE stands as DeFi's premier lending protocol, pioneering innovations like flash loans, credit delegation, and multi-chain deployment. With over $10B in TVL across Ethereum, Polygon, Avalanche, and other chains, AAVE has established itself as the institutional-grade money market of decentralized finance. The protocol's Safety Module, where AAVE tokens are staked to secure the protocol, creates a unique value accrual mechanism combining governance rights with insurance backstop functionality.
📊 Portfolio Perspective
✅ Strengths
- Dominant lending protocol ($10B+ TVL)
- Multi-chain deployment strategy
- Safety Module staking (7-10% APR)
- Battle-tested security (since 2017)
- Strong institutional adoption
- Fixed supply (16M tokens)
⚠️ Considerations
- Competition from Compound, Morpho
- Smart contract risk exposure
- Token unlocks from early investors
- Revenue not directly distributed to holders
| Allocation Tier: | Blue-Chip DeFi |
| Risk Profile: | Medium |
| Time Horizon: | Medium-long term (3-7 years) |
About AAVE
AAVE, originally launched as ETHLend in 2017 and rebranded in 2020, revolutionized decentralized lending by introducing algorithmic interest rates, flash loans, and over-collateralized borrowing without credit checks. The protocol operates across multiple blockchains including Ethereum, Polygon, Avalanche, Arbitrum, and Optimism, with combined TVL exceeding $10 billion. AAVE tokens (capped at 16M supply) serve dual purposes: governance over protocol parameters and staking in the Safety Module, which acts as an insurance fund protecting depositors while rewarding stakers with 7-10% APR. The protocol generates revenue through borrowing interest and flash loan fees, with governance deciding on treasury management and protocol upgrades through decentralized voting.
🌐 Related Protocols
- 💰 Ethereum DeFi Protocols - Explore other lending and DeFi protocols
- ◈ Ethereum Scorecard - Understand AAVE's base layer
- 🏗️ Ethereum Infrastructure - Oracle and infrastructure dependencies
🔬 Research Starting Point
This scorecard provides a research foundation. We encourage readers to conduct further research at CoinGecko, DeFiLlama, and the AAVE Governance Forum before making investment decisions. Smart contract interactions carry risks including potential loss of funds. Always verify contract addresses and understand protocol mechanics before depositing assets. Historical performance does not guarantee future results.
Sagix