Aave is a decentralised, non-custodial liquidity protocol that permits anybody to borrow and lend a variety of digital belongings.
It started as Lend (LEND) in 2017, rebranded, and began migrating the earlier token to AAVE in October 2020.
The platform is accessible in numerous iterations: Variations 1, 2, and three. In keeping with an Aave Docs entry, the latter provides improved capital efficiencies, better safety, and cross-chain performance whereas permitting for top decentralisation.
Whereas its focus continues to be on peer-to-peer (P2P) borrowing and lending of crypto belongings, the protocol continues to be restricted to Ethereum and some ERC-20 tokens, largely stablecoins. Thus, it excludes a large chunk of the digital asset area by being unable to cope with Bitcoin instantly.
Nevertheless, there’s a workaround: Wrapped Bitcoin (WBTC).
A wrapped asset is a token (normally issued on Ethereum’s blockchain) representing the unique asset, with its value being kind of pegged to the native coin.
I consider cryptos on different blockchains, resembling ADA, BNB, XRP, SOL, and AVAX, will ultimately be obtainable in a wrapped kind as this market matures.
The place are tokens obtainable by its platform stored? In keeping with its web site FAQs:
