The Bankless Guide to Aave

Aave is a decentralized finance (DeFi) protocol that enables users to lend and borrow cryptocurrencies without intermediaries. It has become one of the largest and most popular DeFi platforms since its launch in 2020.

Aave is an open-source, non-custodial lending protocol built on Ethereum and other blockchain networks. 

For lenders, Aave provides an opportunity to earn interest by supplying cryptocurrencies to liquidity pools. aTokens, which are interest-bearing tokens that represent a user's deposited assets, automatically accrue interest. On the flip side, borrowers can take out overcollateralized loans by depositing supported crypto assets as collateral.