This article will answer the question, “what is Aave?”. Aave is a decentralized finance (DeFi) lending protocol that lets users borrow and lend cryptocurrencies. Those who borrow pay interest, while those who lend earn interest.

The protocol was originally built on the Ethereum blockchain before expanding to other blockchains, including [Avalanche](/news/article/avalanche-bridging), Fantom, and Harmony.

## History

[Aave](https://aave.com/) was launched in 2017 by Stani Kulechov, a Finnish programmer and entrepreneur. Kulechov founded it while still studying law at the University of Helsinki.

The protocol began operations as ETHLend. However, it was renamed Aave, which means “ghost” in Finnish, in 2018. ETHLend differed from the current protocol in that instead of pooling funds, it tried to match lenders and borrowers in a peer-to-peer fashion. ETHLend had its own token called LEND.

The LEND cryptocurrency migrated to Aave with a rate of 100 LEND tokens to 1 AAVE. ETHLend then became a subsidiary of Aave.

The protocol went live on the [Ethereum](/coins/eth) mainnet in January 2020. By August of the same year, it had risen to be the second Defi protocol to get $1 billion in total value locked (TVL), with MakerDao being the first.

## What is Aave protocol?

The protocol uses a system of smart contracts to enable the borrowing and lending of cryptocurrencies in a trustless manner.

Lenders deposit funds to the platform, which are then collected into a liquidity pool. Borrowers draw from the liquidity pools the funds they wish to borrow.

Those who deposit their tokens into the liquidity pools receive aTokens, which allow them to collect interest on their deposits.

Anyone who wants to take out a loan must deposit collateral worth the same amount of crypto they wish to borrow.

Besides the regular loans, users also benefit from [flash loans](https://docs.aave.com/faq/flash-loans), instantaneous crypto loans that require no collateral. The loans, unlike regular loans, have to be paid back within one block transaction. If not, they are automatically reversed.

## What is AAVE

AAVE is the native token of the platform. The token has several uses. Holders can use them as collateral when taking a loan from the platform.

Using the tokens as collateral raises a borrower's borrowing limit. Those who borrow the tokens also benefit by bypassing borrowing fees and getting a discount on fees if they post the tokens as collateral.
The tokens are also used for governance. Holders can use them to vote on the direction of the platform and how to manage its funds. Each token is equal to one vote.

Furthermore, the tokens can be staked within the Safety Module to earn staking rewards and add more security to the platform. The platform offers returns of up to 9.1% a year for staking.

## Pricing

According to [Coinmarketcap](https://coinmarketcap.com/currencies/aave/), as of writing, the protocol's tokens are trading at $60.21 per coin. They currently rank as the 49th largest cryptocurrency with a live market cap of $848,523,426.
The tokens have a max supply cap of 16 million coins. There are currently 14,093,193 of them in public circulation.

Those who wish to invest in the tokens can find them listed in various crypto exchanges, including Binance, Kraken, Huobi Global, Uphold, Bitrue, and Deepcoin.

## Achievements

The crypto lending platform has come a long way as a crypto project looking to dominate the DeFi space. As of 2022, the project has made huge steps to realize its goal.

In March 2022, Aave V3 was launched. It came with several features, including Portal, which allows the protocol to operate seamlessly across different blockchains. Other features include eMode, Isolation mode, and Risk Management features.

eMode enhances borrowers’ power by assessing the correlation between their collateral and borrowed assets. Isolation mode mitigates solvency risk when a newly listed asset is added to the platform’s liquidity pools. Risk Management features protect the platform from insolvency.

The platform has gone beyond lending and borrowing crypto by launching Lens Protocol, an NFT-based decentralized social network protocol that runs on the Polygon network.

Although not an achievement but one in the works, in July 2022, the platform's community approved proposals to launch a Stablecoin called GHO. The proposal was backed by 99.9% of the voters. GHO will launch as an overcollateralized stablecoin pegged to the US dollar. It will also backed by a diversified set of crypto assets.

## Conclusion

Aave stands out as one of the leading crypto lending platforms. According to analytics platform [DeFi Llama](https://defillama.com/protocol/aave), it is one of the largest public lending markets with $4.26 billion in total value locked (TVL).

Its native token is also doing well compared to other cryptocurrencies. Many crypto prediction platforms agree that better days are yet to come for the token.

It is worth noting that before investing in any crypto asset, extensive research should always be done.


green circuit board image with little chosts from Aave crypto logo

What is Aave protocol?

How is the SushiSwap AVAX relationship going since they partnered last year?

[Avalanche](/news/article/avalanche-crypto-metamask) network is an open smart contract platform that has emerged as an efficient Ethereum competitor. Many innovative decentralised apps are now opting for it to benefit from its ecosystem. Avalanche already has some big projects like [Trader Joe DEX](https://traderjoexyz.com/home#/), [AAVE](https://aave.com/), [Lydia Finance](https://www.lydia.finance/), and [Curve](https://www.curve.com/), to name a few. 

But the most impactful name among them has been [SushiSwap](/news/article/sushiswap-metaverse). The SushiSwap AVAX hook up was, and is, big news.

In March 2021, [Sushiswap and Avax network partnered up](https://medium.com/avalancheavax/sushiswap-launches-on-avalanche-bringing-another-leading-dex-to-avalanches-growing-defi-ecosystem-8b84e966251f) to bring a decentralised exchange on a faster and more economical platform. It has helped both platforms to expand their services to the crypto community.

Let's learn how these platforms have been progressing since the SushiSwap AVAX union.

## ,Journey of SushiSwap on the AVAX network

Sushi is an Automated Market-Making (AMM) DEX introduced in 2020. It allows trading tokens in a frictionless manner. The exchange is a UniSwap’s fork which has evolved into one of the biggest exchanges in DeFi. Besides, it supports most Ethereum L2 solutions and L1 blockchains, including Avalanche.

The DEX became a part of AVAX’s Rush incentive program in 2021. It enabled the platform to build a liquidity incentives fund for mining. Moreover, SushiSwap on AVAX blockchain gained the multi-chain feature. Also, the diverse non-Ethereum ecosystem of Avalanche further boosted its token’s value.

## Penguin Finance

Beyond that, a breakthrough project for SushiSwap AVAX has been [Penguin Finance](https://www.penguinfinance.org/). It is the first yield farm from SushiSwap on the AVAX blockchain. The customers can get better yields for PEFI, AVAX, iPEFI, and SUSHI tokens through it. It uses Sushiswap's LP tokens for generating yields.

This DApp offers various financial products, including its own collection of NFTs. These leverage Avalanche’s low fees and speedy transactions and promote mass crypto adoption. 

## Does Avalanche benefit from the SushiSwap launch?

Avalanche has also benefited from the Sushi launch on its network. Including an exchange that focuses on DeFi traders attracted more similar projects to the network. Among them, DEXs like Multichain, Plasma Finance, ADA Finance, Coin98, and Trader Joe are a few examples. 

Moreover, data from [DeFillama](https://defillama.com/chains) suggest that it is the fourth largest chain in DeFi. Currently, the total value locked on the chain is $1.58b. Though its TVL is lower than Ethereum, Tron, and Binance, it makes up around 2.87% of the entire industry. It gives Avalanche an edge over other L1 blockchains like Solana. 

Besides, as more innovative projects enter its ecosystem, it has introduced a bridging feature. Firstly, it was introduced for Ethereum, but has expanded to the [Bitcoin bridge](/news/article/avalanche-bridging). It may also include several other tokens in the future, increasing the interoperability for the developers as well as crypto users.


SushiSwap and AVAX Relationship

Aave is a crypto lending platform that allows users to deposit their crypto assets, earn interest on them, or borrow against them and pay interest. It is one of the leading protocols in the [DeFi](/news/tag/defi) space and has grown in popularity since its launch in early 2017.

Let's dive in and explore in detail.

## What is the Aave protocol?

Aave is a decentralized finance protocol running on the [Ethereum](/coins/eth) blockchain. It features a system of smart contracts that lets users borrow and lend cryptocurrencies without the need for intermediaries. Those who lend earn interest, while those who borrow pay interest.

The protocol is a system of lending pools. Users deposit their digital assets into liquidity pools, which borrowers can draw from to take out loans. Those who wish to borrow crypto must post collateral before they can borrow. They can also only borrow up to the collateral they post.

Lenders receive the Aave blockchain native token 'aTokens' in exchange for their deposited crypto assets. The aTokens are pegged 1:1 to the value of deposited cryptocurrency. As an aToken holder, you benefit by passively earning interest on your funds. The tokens are ERC-20 tokens and can be stored, transferred, or traded.

## Aave Tokens (AAVE)

AAVE tokens are the native currency of the Aave protocol. They have several use cases; however, governance is their main use case. Holders of the tokens can use them to vote on the direction of the platform and how to manage the protocol's funds. One token is equal to one vote.

Owners can stake their aTokens for staking rewards. They can also be used as collateral. Borrowers who use them as collateral raise their borrowing limit. Those who borrow and post the tokens as collateral benefit from discounted borrowing fees.

 aTokenS can't be mined. It can only be earned or bought on various cryptocurrency exchanges that list it, including Coinbase Pro, Binance, Uniswap, Kraken, and KuCoin.

## Aave V3

[Aave V3](https://docs.aave.com/developers/getting-started/readme) is the latest version of the Aave Protocol. It officially launched in March 2022, and a few notable features came with it.

·	Portal: Portal allows the flow of liquidity from Aave V3 to other networks. The feature will enable users to participate in borrowing or lending protocols on chains like Solana and Avalanche.


·	High-Efficiency Mode (eMode): High-Efficiency Mode or eMode helps enhance borrowers' power by assessing the correlation between their collateral and borrowed assets.


·	Isolation Mode: Isolation Mode enables new digital assets to list on V3 as isolated assets, which was impossible with V1 and V2. The feature helps mitigate solvency risk when a newly listed asset is introduced to the protocol's liquidity pools.

Other upgraded features include risk management features that protect the protocol from insolvency. 

More benefits of the latest version include gas fee reduction and the ability of users to obtain multiple reward types within a single transaction. It also supports key blockchains such as Harmony, Arbitrum, Fantom, Polygon, Avalanche, and Optimism.

## AAVE Price Prediction

Several crypto prediction platforms see a bright future for AAVE. However, a few, like WalletInvestor seem to think otherwise about this cryptocurrency.

Digital Coin Price predicts that this cryptocurrency might be trading at an average price of $164.81 in 2023, $188.11 in 2024, and $220.08 in 2025. It might even trade above $600 by 2031.

![aave article.png](https://s3.eu-west-2.amazonaws.com/prod-monitalks-media/aave_article_22b189bf02.png)
 
Priceprediction.net predicts this crypto might be trading at an average price of $184.12 by 2023, $275.43 by 2024, and $377.53 by 2025. 

The longer you hold the tokens, the better you might benefit, as the site also predicts this cryptocurrency might be worth more than $3,000 by 2031.

![aave 2.png](https://s3.eu-west-2.amazonaws.com/prod-monitalks-media/aave_2_f509b5dad0.png)

WalletInvestor, on the other hand, predicts a bearish future for AAVE. It might be trading at an average of $12.825 by the end of 2022. The coins will begin 2023 trading at $13 and will depreciate to trading below $10 most of the year. They will end 2023 worth an average price of $6.777.

![aave 3.png](https://s3.eu-west-2.amazonaws.com/prod-monitalks-media/aave_3_c59da37bce.png)

## Is it a good investment?

While there are mixed expectations regarding AAVE's future, this cryptocurrency has had a good run and continues to perform well. Thanks to the various developments. For example, after the Aave V3 went live on 16th March 2022, the price went up from $112 to $240 -  a 97% price increase.

While the price increase was not as much as the tokens' all-time high price of $661 in May 2021, it was enough to show that investors still believe in what this project offers.

A plus is that the Aave protocol has never had any significant issues to deter people from using it. The protocol is backed by an impressive team of developers who continue improving its service delivery and adding new services.

In July 2022, the Aave community agreed on a proposal to launch the network's Stablecoin called GHO. The Stablecoin, pegged to the US dollar and backed by a diversified set of crypto assets, would make stablecoin borrowing on the protocol more competitive.

In May 2022, they launched the Lens Protocol, a decentralized social media platform based on the Polygon Blockchain that lets users store content as NFTs.

## Bottom line

AAVE remains one of the best cryptocurrencies to watch out for in the crypto market. The tokens are currently trading at a reasonably good price. Several crypto prediction platforms see them as good long-term crypto investment options.

Investors also agree if the network continues to develop and offer new and better services to users, the tokens can benefit, helping with their price appreciation. 

Remember to do your research before investing in any cryptocurrency.



Aave Price Prediction

So you’re into all things Crypto and you no doubt know about DeFi, but have you heard about GameFi?

Don’t feel left out if you don’t know what I’m talking about, this is all fairly new even to longtime HODL’ers.

Crypto games are video games that run on a cryptocurrency network and include a completely or partially distributed ledger architecture, providing players verifiable ownership over the virtual products contained in the games.

But where do the roots of this movement come from?

2003 is considered the year that in-app purchases entered online games in a really big way, from obscure role-playing games about medieval knights to virtual world Second Life, and even corporate-backed entries like Disney’s ToonTown Online.

Eventually, there had to be a huge moving force that would change the world forever- three letters that kickstart this story and lay the foundation for what we will likely be experiencing now and in the future in regards to virtual currency: WoW.

Released in 2004, World of Warcraft is arguably the most successful, massively multiplayer online role-playing game of all time, at its peak, it had upwards of ten million users in the game. The in-game currency of WoW, simply titled “Gold,” can be used for anything imaginable, from items to services with increasingly esoteric means, like food that makes your character spit fireballs.

A Side-effect of this? The line between digital and real currency begin to blur.

By the late 2000s, that line between virtual currency and fiat was one that individuals and enterprises alike were bouncing back and forth over for profit. Value could be digital. Value could be anything. And this was no longer just limited to nerdy kids. Farmville, popular with kids and parents alike, posted revenues of $235 million in the first quarter in 2010, most of which was from in-game purchases for digital goods.

Fast forward to 2021 and almost all mobile and console games including Roblox, Minecraft, and Fortnite have in-app purchases. Welcome to the age of GameFi.

This is no doubt moulding the youth into a generation that feels incredibly comfortable with digital currency transactions.

Axie Infinity is among the biggest—and most polarizing—of these new games, which allow players to accumulate tradeable crypto coins. To investors like billionaire Mark Cuban and Reddit co-founder Alexis Ohanian, who were part of a $7.5 million funding round for Vietnamese game-maker Sky Mavis in May, it’s a gateway to crypto for people playing around the world.

Those players are banking on the success of Bitcoin and others in hopes of turning them into high-value tokens.

Other projects that include some of the most popular coins in the GameFi space: Uniswap, Chainlink, Dai, ZRX, Maker, Aave, and PancakeSwap.

This, along with the recent NFT craze will absolutely contribute to massive growth in cryptocurrency adoption.

Game on.

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