{"id":302666,"date":"2021-09-08T10:04:37","date_gmt":"2021-09-08T14:04:37","guid":{"rendered":"https:\/\/insidebitcoins.com\/?page_id=302666"},"modified":"2021-11-23T12:57:14","modified_gmt":"2021-11-23T17:57:14","slug":"sell-aave","status":"publish","type":"page","link":"https:\/\/insidebitcoins.com\/sell-cryptocurrency\/sell-aave","title":{"rendered":"How to Sell Aave (AAVE)"},"content":{"rendered":"

Aave is the native and governance token of the AAVE protocol, a decentralized protocol that supports the lending and borrowing of tokens. Lending and borrowing were only peculiar to the legacy system until the emergence of decentralized finance, which seems to be phasing out the former owing to its numerous benefits. Aave protocol was founded by Stani Kulechov, a blockchain enthusiast in 2017 but was known as EthLend at the time. ETHLend was different in the sense that it only matched borrowers and lenders together via a peer-to-peer system and used LEND as the native token.<\/span><\/p>\n

In 2018, a name change would later occur for the protocol with ETHLend becoming a subsidiary of Aave, meaning ‘ghost’ in Finnish. The Aave protocol runs on the Ethereum blockchain such that even its native token, AAVE, is compliant with ERC20, the standard for token creation on the blockchain.<\/span><\/p>\n

Aave protocol contains numerous pools from which users can borrow several tokens such as stablecoin DAI,  ETH, Basic Attention Token (BAT), MANA, etc. However, before borrowing they have to deposit collateral either in the form of stablecoin DAI or any other cryptocurrency including ETH and AAVE. Using AAVE as collateral entitles borrowers to discounted fees. Lenders on the protocol earn interest on the tokens they deposited such that they are issued with a pegged token having the same value as their deposited tokens. <\/span><\/p>\n

Due to the relevance of the Aave protocol in decentralized finance (DeFi), AAVE token has become a major attraction for investors just like the native tokens of other DeFi protocols such as Uniswap (UNI), Compound (COMP) and many more. Besides, AAVE is a deflationary token that reduces in supply as 80% of the fees generated on the protocol are burnt and taken out of circulation forever while the remaining 20% is shared as interest among lenders on the protocol. As such, as supply decreases and there is constant demand, this is bound to have a positive effect on the price of AAVE, which has crossed $400.<\/span><\/p>\n\n \n

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