Review on Aave by Fanuel PORPORTY
Aave Protocol: Leader in the field of DeFi.
The most important aspect of Aave is the Aave protocol which was launched in January 2020 marked by a significant change in strategy. Shifting from decentralized P2P lending to a pool-based strategy, the Aave protocol is a non-proprietary open source protocol that allows users to create their own decentralized money markets on the Ethereum blockchain. Depositors provide liquidity by depositing cryptos into loan pools which will then allow them to earn interest. Meanwhile, borrowers can get loans by tapping into these loan pools. Thanks to the explosion of DeFi, several protocols have emerged but each Protocol has its particularity. The Compound project for example has USDT as a usable asset, but Aave offers a wider range of tokens. For new users, Aave offers some very interesting incentives.
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Aave has proven to be a good addition to the DeFi community and should prove popular.
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Pros
- Simple and easy to use protocol
- Aave has the feature of granting instant loans without collateral
- Fully decentralized protocol, no middleman, no KYC
Cons
- The DeFi sector is still young.
