Deep Dive into Aave (LEND)

Emirex Group | Sep 23, 2020 9:31:09 PM

Aave (LEND) is an open-source DeFi protocol. On 11th September Aave (LEND) was listed for trading on the Emirex exchange.

Current available trading pair on the Emirex exchange: LEND/USDT and LEND/BTC.

  • Aave is an open-source and non-custodial protocol to earn interest on deposits and borrow assets with a variable or stable interest rate;
  • The native LEND cryptocurrency acts as collateral in all smart contracts and is used to reduce commissions;
  • Aave Protocol supports more than 17 different assets, with a large selection of stablecoins;
  • The service supports unsecured loans, "rate switching", flash loan, and some unique types of collateral.

CryptoCurrency Profile

  • Token Standard - ERC-20
  • Aave Price - $0.557185 USD
  • Aave ROI - 3,562.36%
  • Market Rank - #28
  • Market Cap - $724,340,267 USD
  • 24 Hour Volume - $204,870,848 USD
  • Circulating Supply - 1,299,999,942 LEND
  • Total Supply - 1,299,999,942 LEND
  • All Time High - $0.889743 USD (Aug 26, 2020)
  • All Time Low - $0.003353 USD (Sep 06, 2019)

About Project

Aave is a lending service that gives users the ability to lend and borrow a range of cryptocurrencies using both variable and stable interest rates. The Finnish word "aave" means "ghost", which reflects their desire to create a transparent and open infrastructure for decentralized finance.

The company started in 2017 as ETHLend and held an ICO, raising a total of $ 16 million from the sale of LEND tokens. The founding team renamed the company to Aave in 2018 but kept LEND as the name for their own token.

Aave's goal is to continue to maximize the potential of DeFi applications to create money markets on the Ethereum blockchain with a wide range of platform features. It is based on an open-source and non-custodial protocol that allows the creation of money markets. Investors provide liquidity in the market to generate passive income, while borrowers can take out loans at fixed or variable interest rates.

  • Instant deposits and withdrawals under a smart contract;
  • Instant borrowing from reserves, with one perpetual credit line and no scheduled payments;
  • Multi-collateral borrowing: users are able to borrow loans against several collaterals at the same time;
  • The ability to borrow money at a variable or fixed interest rate and switch between these two options at any time;
  • A decentralized insurance fund that will collect a small portion of the pool's income to cover losses in the event of liquidation issues;
  • High granularity in handling various collaterals. 

LEND token

The LEND cryptocurrency is used in the protocol for management. Coin holders can vote and propose their own protocol changes. To protect against inflation, the system will charge a commission from pool members to buy tokens on the market and burn them.

Interest tokens are minted on deposit and burned at redemption. Tokens are pegged 1: 1 to the value of the underlying asset that is deposited in the Aave protocol. ATokens like aDai can be freely saved, transferred, and sold.

While the underlying asset is lent out to borrowers, ATokens calculates interest in real-time and one can watch the balance grow every minute.

The Aave Pay service allows EU residents to buy almost any goods for the euro using crypto assets. Users take loans from Aave and send money to a bank account.

Recent News

  • 16 Jul 2020: Launched new features and listings;
  • 29 Jul 2020: Introduced tokenomics upgrade proposal: The Aavenomics;
  • 06 Aug 2020: Announced the girst Credit Delegation on Aave Protocol;
  • 13 Aug 2020: Introduced the launch of governance on the Ropsten testnet;
  • 14 Aug 2020: Announced a new version of the Aave Protocol;
  • 31 Aug 2020: Introduced update: DeFi in VR, Governance on testnet, and EMI license.


The project has published a schedule updates since the release of Aave Protocol in January 2020, in which the most recent developments are:

  • 14 May 2020: Upgraded borrowing rates;
  • 28 May 2020: Uniswap Market;
  • 30 Jun 2020: $100m market size;
  • 9 Jul 2020: Liquidity Risk Framework;
  • 16 Jul 2020: ENJ and REN listed.

The team has not yet published a more recent version of the roadmap for Q3 - Q4 2020, but it can be assumed that it will be updated soon.


The idea of ​​anonymous lending in modern realities initially looked controversial. But with the help of smart contract mechanisms, most of the risks are avoided. Banks and large investors will not lend to other people through this platform, but a loan from users will be popular. Smart contracts allow solving the main problem of lending between individuals - the lack of legal force and collateral. The idea was implemented not in the legal field, through regulation by-laws, but through the provision of cryptocurrencies. Anyone who wants to sign a contract must provide Lend as security. This significantly reduces the risks. Such a system takes place in modern realities and brings benefits to ordinary users. 

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