Aave
About Aave
Aave is a decentralized finance protocol that allows people to lend and borrow cryptocurrencies. Lenders earn interest by depositing digital assets into liquidity pools. Borrowers can use their cryptocurrencies as collateral to get a quick loan. With Aave meaning 'ghost' in Finnish, the platform previously launched as ETHLend in November 2017 but was rebranded to Aave in September 2018. The Aave company gives registered users on their platform a reduction on fees and also doubles as a governance token, granting certain rights to influence future development on the protocol.
In the last hour, Aave's price has seen a change of -0.50%, and over the past 24 hours, its price has moved by -0.20%. Over the previous week, Aave's price has moved by +8.49%. The current price of Aave is BHD 58.28, accompanied by a trading volume of 97.43M in the last day. Aave's price is currently 76.83% below its all-time high of BHD 251.50, which remains the highest price Aave has achieved since its launch. The circulating supply of Aave stands at 15.43M, translating to a total market capitalization of 899.3M.
Market stats
Frequently asked questions
What is the Aave Protocol?
Aave (AAVE) is a decentralized finance (DeFi) protocol that allows users to lend their cryptocurrencies in exchange for interest, as well as borrow both crypto and real-world assets. The protocol was originally built on the Ethereum blockchain and has since expanded to other networks such as Avalanche and others. Instead of the traditional bank-style credit check process, Aave places funds within smart contracts so that all transactions are carried out automatically without an intermediary. When lenders deposit digital currencies into the protocol, they are sent to a “liquidity pool” used to meet borrowers’ requests. Consequently, lenders deposit cryptocurrencies into pools, and borrowers borrow from them. The AAVE token can be staked on the platform in exchange for interest and used to govern its Decentralized Autonomous Organization (DAO). The platform also offers benefits to users, such as lower fees.
How does Aave work?
The Aave platform operates through smart contracts on the Ethereum blockchain and other supported networks. Users can deposit supported cryptocurrencies into liquidity pools and earn interest based on the demand for these assets. Borrowers can access these pools by providing collateral that exceeds the amount they wish to borrow, ensuring the protocol’s security through overcollateralization. Interest rates are determined by algorithms and adjusted based on the utilization rate of each asset in the pool. The protocol’s governance system is decentralized, with AAVE token holders proposing and voting on changes, ensuring that the community guides its development.
How do you buy AAVE on Rain?
Buying AAVE on Rain involves a few simple steps:
- Ensure you have funds in your fiat account or add your card in the payment methods section.
- Select the cryptocurrency you wish to buy from your account’s home page.
- Tap “Trade” and select “Buy.”
- Enter the amount you wish to buy in your preferred currency.
- Choose your payment method, either using a bank card or the cash balance in your wallet.
- Click “Next” to review your transaction details.
- Tap “Buy Now” to complete the purchase.
AAVE will be added to your wallet once the transaction is executed. At Rain, we use cold storage to keep the majority of our clients’ assets offline.
Rain is licensed by the Central Bank of Bahrain (CBB) and the Abu Dhabi Global Market Financial Services Regulatory Authority (ADGM FSRA). This provides customers with a regulatory framework for trading digital assets in the region.
What are the risks and considerations
Before buying AAVE, it’s important to understand the associated risks:
• Governance and regulatory risks: the value of the token may be affected by legislation and regulation.
• Custody risks: you must protect your account with a strong password and two-factor authentication, and choose an appropriate storage method after researching it thoroughly.
• Smart contract risks: the token may be exposed to cyber risks related to smart contracts, although these are limited.
• Price volatility risks: the currency may be subject to sharp price fluctuations.
You should not purchase AAVE based solely on price expectations. Instead, you should study the whitepaper, the currency’s use cases, the project’s vision, and your risk tolerance before making any decision.
What are the use cases for AAVE?
AAVE tokens are used to participate in the platform’s protocol governance, vote on development proposals for the platform, and stake them to help enhance security.
How do lenders earn returns?
Lenders receive interest paid by borrowers in exchange for the use of assets deposited in liquidity pools.
Do you need to provide collateral to obtain loans?
Yes, the protocol requires collateral exceeding the loan amount to protect the system from any risks related to default.
How to invest in Aave?
Rain offers you a number of ways to start investing in Aave, including buying Aave through bank transfers or by using your bank card. To purchase Aave on Rain, you can select Aave in your Rain account, then click Trade and select Buy. Enter the amount you wish to buy and click Next to review and confirm your purchase.
How to buy Aave with card?
Once you add your bank card to your Rain account, you can use it to buy Aave directly. You can start by adding your card to your payment options on your Rain account. To purchase Aave using your bank card, you can select Aave, click Trade then select Buy. Enter the amount you wish to buy and choose your card from the payment options. Click Next to review and complete your purchase by following the instructions on the screen.
note: The purchase option with debit or credit card is not available for our users in Turkey
How to buy Aave through bank deposit?
Rain enables you to buy Aave using your local currency. You can deposit funds through bank transfer, a process which takes 1-4 business days depending on your location. You can start by depositing funds to your Rain account from your bank account. Simply click on Deposit and enter the amount you would like to transfer. Click next and copy the instructions that will appear on your screen to complete the transfer from your bank account. Note that Rain does not automatically pull funds from your bank account and you will need to manually transfer the funds from your bank account to Rain's banking information.
Within 1-4 business days, the funds will be available in your Rain account and you will be able to use them to complete purchasing Aave. To do that, you can select Aave in your Rain account, click Trade and select Buy. Enter the amount you wish to buy with and click Next to review and confirm your purchase.
How to sell Aave?
This is an easy process that requires only a few clicks. Here are the steps needed to sell Aave successfully:
On your Rain account, select Aave then click Trade and select Sell. Enter the amount you wish to sell and click Next to review and confirm your sell transaction by entering an OTP. You will receive a confirmation email once the transaction is done with the details.
How to convert Aave into cash?
Rain gives you the opportunity to sell Aave and withdraw your funds from your Rain account to your local bank account. First, you need to add your personal bank account to your Payment Methods option on your Profile.
Once your bank account is added, you can sell Aave and withdraw the funds to your bank account by clicking on Withdraw and entering the amount you wish to withdraw. Click Next to review and confirm your withdrawal information by entering an OTP.
Once the withdrawal request is submitted, you will receive a confirmation email that the withdrawal is being processed. Processing your withdrawal request can take between 1-4 business days.
How to receive Aave?
If you would like to receive Aave in your Rain account, simply click on Receive and select Aave from the list at the top of the page. You can then either copy the address visible at the botom of the screen or share the QR code to to complete your receive transaction.
Make sure that you are using the correct network when receiving Aave to avoid possible loss of funds.
How to send Aave?
You can easily send your Aave from your Rain account to any external wallet by clicking on Send and selecting Aave from the list at the top of the page. Enter the amount you wish to send and add the external wallet address you are sending to. Click Next to review and confirm your send transaction by entering an OTP.
Why buy Aave with Rain?
When you buy Aave with Rain, you ensure that your assets are going to be safely stored on a regulated platform that follows strict compliance standards and is subject to periodic audits. Rain also uses bank-grade security measures like Cold Storage systems. Trading and storing Aave on Rain also means that your asset is going to be stored on 1:1 basis, which means your assets will always be available to you.
What is a Aave wallet?
A Aave wallet is where you can securely store Aave. A wallet helps you maintain ownership of your asset as well as enable you to trade, send or receive crypto-assets.
What is a Aave address?
A Aave address is a string of unique characters that is tied to your Aave wallet. The address functions just like a bank account number and it is what you use in order to send Aave from your wallet, or to receive Aave to your wallet.
What trading pairs available for Aave?
There are over 200 currency pairs available on Rain for you to trade with. You can trade Aave with Bahraini dinar, Kuwaiti dinar, Emirati dirham, Omani rial or US dollar, depending on your location. Additionally, you can swap Aave with 200 other assets like BTC, LTC, XRP, ETH. You can explore your options by visiting the market page on your Rain account: https://www.rain.com/market
What is the minimum order size to buy Aave?
You can trade Aave with any amount above $30 or equivalent in your account's currency. You can start trading Aave now by clicking the Trade button on your Rain account.
What are the most popular cryptocurrencies besides Aave?
Besides Aave, you can find over 150 assets available on Rain for you to start trading such as Bitcoin (BTC), Ethereum (ETH), Solana (SOL), USDC, Ripple (XRP), DOGE, Tether (USDT), Chainlink (LINK) or BCH. You can explore these options by going to the homepage of your account and scrolling through the available assets. When you are ready to start trading, simply click on the asset of your choice and click Trade.
What blockchain is Aave built on?
Aave is built on the ETH blockchain. This determines how transactions are verified, fees are structured, and how compatible it is with wallets and other decentralized applications (dApps).
How do I keep my Aave safe?
To keep your Aave safe, make sure to use trusted wallets that support ETH. Enable two-factor authentication (2FA), store long-term assets in cold wallets, and never share your private keys with anyone. You can always refer to our Security & Policies section for more tips.
What will the price of Aave be in next 5 years?
Price predictions for Aave over the next five years are highly speculative and depend on crypto market conditions, adoption, and broader crypto trends. We encourage you to do your own research and make informed decisions.
Is trading Aave taxable?
Trading Aave may be considered taxable in some countries with varying tax rules, so we recommend checking with your local tax authority or financial advisor for specific guidance.
What is Aave's ATH?
Aave’s all-time high (ATH) was BHD 251.50 on 18 May 2021. This represents the highest recorded market price of the asset to date.
What is the market cap of Aave?
With a market capitalization of 899.3M, Aave is ranked 40 among other crypto assets.
What is the all-time high of Aave?
The highest valuation of Aave since its launch was at BHD 251.50, marking its all-time high.
What is the 24-hour trading volume of Aave?
The trading activity of Aave over the last 24 hours was at 97.43M, highlighting its liquidity in the market.
How many Aave are there in circulation?
There are approximately 15.43M units of Aave currently in circulation, affecting its market dynamics.
What is the relative popularity of Aave?
Aave market cap is around 899.3M.
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