Categories: Cryptocurrency Investing

Aave Coin complete guide 2021

What is Aave Coin

Launched in November 2017, previously known as ETHland, Aave is a decentralized lending pool protocol founded by Stani Kulechov. It is an ecosystem of smart contracts running on top of the Ethereum blockchain. It utilizes it’s native token best known as the Aave Coin or just Aave.

The token powers Aave’s two in-house finance markets, the Aave market and Uniswap market. Users can deposit, borrow, repay, redeem, liquidate, do a flash loan or swap tokens with the lending pool reserves.

Using decentralized on-chain governance the Aave protocol allows multiple lending pools with separate liquidity parameters, permissions and type of assets. Its token controls the rights of the protocol for borrowers in a money market. 

How many Aave coins are there?

There is a total supply of 16,000,000 Aave Coins

How is interest rate calculated for borrowers on Aave?

The interest rate for the money market accounts is based on how much funds are available in the lending pool at any given time. If the amount of funds decreases, the interest rate increases. 

How is interest rate calculated for lenders on Aave?

Lenders earn interest on their deposits into the lending pool. The interest rate charged on borrowers determines the earning rate. The Aave algorithm protects the liquidity reserves to guarantee withdrawals.

Is it a good investment?

Yes, Aave Coin is a good investment. It has a solid real-world use case. From February 2020 to February 2021 it grew by approximately 98,000%. This may not be the case going forward, considering that it is maturing, however, it has strong prospects of continuing to grow. Analysts at Rateweb predict that the coin will reach $10,000.00 (R150,000.00) by 2025.

Where can you buy it?

Most South African based cryptocurrency exchanges have not yet listed the Aave Coin as they have with the Bitcoin, you can, however, buy it via different wallets like MetaMask and Coinomi. Alternatively, you can buy it on international exchanges like Coinbase, Binance, Gemini and Kraken.

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Shephard Dube

Shephard is the Founder and Chief Product Officer of Rateweb. He is passionate about personal finance, economics, stock market and cryptocurrencies. He spends most of his time figuring out how organisations and governments can make the environment conducive for business owners and consumers.

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This website uses cookies. DISCLAIMER: Rateweb is not a financial service provider and should in no way be seen as one. In compiling the articles for our website due caution was exercised in an attempt to gather information from reliable and accurate sources. The articles are of a general nature and do not purport to offer specialised and or personalised financial or investment advice. Neither the author, nor the publisher, will accept any responsibility for losses, omissions, errors, fortunes or misfortunes that may be suffered by any person that acts or refrains from acting as a result of articles on this website.