What is Aave?
Aave is a decentralized lending protocol that allows users to borrow cryptocurrencies without resorting to a centralized intermediary. The Aave protocol is based on top of the Ethereum network and uses smart contract technology to execute transactions. It also functions as a DAO - a decentralized autonomous organization. This means that it is managed and controlled by people who own and vote AAVE tokens, the platform's native cryptocurrency. Another interesting thing about AAVE is its ability to offer customized interest rates.
AAVE functions as a management token , giving holders a vote on decisions about protocol changes and updates based on the number of AAVE they own. AAVE is also a service token . Users who send AAVE as collateral receive a discount on transaction fees as well as priority to make their cryptocurrencies available for credit. AAVE tokens are built on the ERC-20 standard and are designed for deflation. There are currently 13 million AAVEs in circulation, about 84% of the total supply.