Aave
Aave’s story began in 2019 as a leading DeFi lending protocol that popularized the use of flash loans.
It is now one the most widely used protocols that provides lending and borrowing of cryptocurrencies, has the feature of aTokens, possesses liquidity pools, provides flash loan options, isolation mode, etc.
Aave has it’s governance token $AAVE. Holders of this token can vote on proposals and modifications of the protocol, this ensures that the community has an impact on the protocol. These tokens can also be used as collateral and for staking. Staking AAVE tokens gives you the opportunity to earn rewards and participate in the network’s consensus mechanism.
aTokens are a different story and they allow users to Repay in case the underlying borrowed asset is locked in the Aave liquidity pool. If a user has stable DAI debt and also holds aDAI tokens, the person can use the aDAI tokens to repay the debt, in one transaction.
Aave started off with Aave v1, which is now no longer in use, while Aave v2 is slowly being deprecated. The main option for users currently is Aave v3, with Aave v4 just around the corner. Some of the differences between these version can be viewed in the "Aave versions comparison" article.
Aave also offers High Efficiency Mode - E-Mode in Aave v3, which is designed to maximize capital efficiency when collateral and borrowed assets are correlated in price. The max amount of eMode categories is 255, with each category having it’s own risk parameters.
In-line with Aave being the biggest lending protocol in DeFi, it's also the main protocol being used by users on DeFi Saver. As such, we aim to have our entire suite of tools available to Aave users on both EOAs and Smart Wallets.
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