Review on Aave by Pedro O. Alvino M.
P2P decentralized loans
Save a platform that is based on the decentralized lending strategy, where loans offer cryptocurrency liquidity through a group contract, where each group has reserves in multiple currencies, whereby each loan can be opened at a stable rate or variable, in which the interest rate is deduced algorithmically.
If the borrower does not meet the loan, the tokens used as collateral are transferred to the lender.
Pros
- Decentralized P2P Loan Platform
- The interest rate of the lenders is set algorithmically
- Through ETHLend you can participate in margin trading by increasing your leverage.
- The loans have an infinite duration
- The LEND token acts as a guarantee for the lenders
Cons
- It is not the only company that offers loans and other banking services based on the blockchain, so you should consider the competition you will face, such as SALT and WeTrust
- The value of the LEND tokens will be greatly influenced by the level of success achieved by the platform
