Review on Aave by francis fernandez

Name: Aave
Item: Aave
Rating: 5

October 21, 2020

Aave: a way to obtain returns and investment assets quickly and safely

Aave is a decentralized platform for financial organizations that allows credit operations without endorsement and grant lines of credit on the Ethereum network, through the use of a digital asset.
Token:
The Aave network operates with two tokens compatible with the Ethereum network. These are the aTokens and UniSwap UniTokens; which are granted to lenders when making their deposits in Aave and are burned when withdrawing said funds from the network.
The tokens operate on the platform
The digital asset of the Aave network has a wide range of compatible crypto assets including stable value currencies.
Technology:
Aave operates under an open and decentralized protocol that uses ERC-20 and ETH tokens to carry out credit operations on the network, through the use of smart contracts from the Ethereum blockchain.
The Aave network protocol is compatible with technology from other exchange chains such as Uniswap that allows interaction with external markets.
Benefits provided by the network:
Like conventional banking entities; Aave grants credits in exchange for receiving a guarantee that guarantees the repayment of the loan granted. Only that on the network the guarantee will be made up of cryptocurrencies that can be exchanged for FIAT money such as the dollar or euro. Therein lies your advantage.
Granting of credits:
The loan application on this platform is made instantly by accessing the MetaMask wallet or another compatible one and after being approved by the Ethereum blockchain, the user can dispose of their assets.
The network offers the user the possibility to choose between fixed or variable rates at the borrower's discretion. Rates are established based on the supply and demand law of the well, that is, the lower the liquidity, the higher the rate.
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Pros

It offers the opportunity to any user to become a lender and obtain interest income.
It allows its users to receive loans in digital currencies under the modality of ERC-20 and ETH tokens.
Offers an easy and fast way to obtain digital assets.
Allows the user to select the interest rate of the loan at their convenience.

Cons