​​Aave (AAVE) Aave is a money market protocol that lets anyon | Crypto Great | Bitcoin | DeFi

​​Aave (AAVE)

Aave is a money market protocol that lets anyone in the world borrow and lend assets regardless of wealth or credit score. It runs on the Ethereum blockchain, allowing it to bypass the middleman (money managers and lenders in this case). This leads to greater yields for its users.

As opposed to the measly fraction of a percent traditional savings accounts offer, Aave pays upwards of 10% on USD stablecoins. It’s in part why users are flocking to the platform at an increasing rate.

Last month, Aave launched its V2 protocol upgrade. This upgrade brings:
Yield and collateral swaps – allows borrowers to avoid market volatility by moving the asset they’re using as collateral to a stablecoin. This would be like moving ETH to USDT as price begins to fall, which reduces the chance of getting liquidated.
Repayment with collateral – allows borrowers to repay a loan in one transaction as opposed to four.
Batch flash loans – originate and can be repaid within the same transaction. This lets users take advantage of arbitrage opportunities when market conditions exist. Now, users can borrow several currencies at once instead of just one.
Gas optimizations – cuts down on costs for the end user by up to 50%.

On top of the platform upgrades, Aave V2 means the community can now take part in governance, making the platform more decentralized. Now, stakeholders can submit proposals for changes to the platform.

These upgrades will help Aave improve its usage and attract more capital. Remember, the more assets Aave attracts to its platform and lends out, the more earnings it means for AAVE token holders.

Since we recommended Aave last month, assets held on the platform have grown 72% from$1.8 billion to $3.1 billion today. This incredible growth shows demand for Aave’s lending platform is surging. We believe Aave will continue to experience this high growth rate into2021 as the need for DeFi grows. That’s why we’re raising our buy-up-to price to $250 today.