Review on Aave by Fabrizio Zampieri

Name: Aave
Item: Aave
Rating: 3

November 02, 2018

The main goal of the company is to create a stable long-term managing and…

The main goal of the company is to create a stable long-term managing and lending platform for users new and old to the marketplace. Fully decentralized peer to peer lending Smart Contract on Ethereum block-chain for lending Ether by using tokens as a collateral. Users can borrow Ether by placing Digital Tokens on Smart Contract for collateral. 
So ETHLend creates an effective way for the borrowers to access funding globally and lenders to fund loan requests around the world. ETHLend uses decentralisation and cryptocurrency to create a global lending market. 
Technically ETHLend came up with the solution to secure the loans by using ERC-20 compatible tokens which may represent almost any value. Alternatively, the borrower can pledge Ethereum Name Service (ENS) domains for securing a loan. By using a collateral, the lender can regain loss in case of default.
All the data of the loan transactions are stored on Ethereum blockchain. The collateral is held by the smart contract, which means that not even ETHLend can move the collateral once the collateral is sent to the smart contract.
Currently, a stable version is running at official company website (ethlend.io), which is accessible with MetaMask.
It's a Swiss based company.
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Pros

- One of the best ecosystems of any cryptocurrency platform online. - Low fees (0.01 ETH fee for deploying a Loan Request and 0.01 ETH fee for funding a loan request). 5% of these fees and additional 1-5% (depending on the previous year’s growth) is used for the buybacks. The solution enables to deliver a strong token to the market and would not affect the cost of service. - Recent launch of Aave financial-tech company (Aave Pocket, Aave Lending, Aave Gaming, Aave Custody e Aave Clearing). ETHLend will become a Aave subsidiary with the same team. - Platform with great potentialities in the medium term.

Cons