Beginner Coin Introductions
Newcomer Analysis 2: Aave
Current Market Cap: $2,348,117,412
Aave describes itself as an open source and non-custodial liquidity protocol for earning interest on deposits and borrowing assets.
At its core, Aave uses blockchain technology to allow depositors and borrowers to use a pool-based lending strategy instead of a direct relationship between lender and borrower. This allows for the unique characteristic of instant loans.
Aave runs on Ethereum; funds are stored on a non-custodial smart contract on the Ethereum network.
Aave has a focus on security: there is an ongoing Bug Bounty program where community members can report bugs or vulnerabilities for a monetary reward of up to $250,000 for critical bugs. Additionally, Aave Protocol is audited by six different firms and has made all audits publicly available.
Aave has integrated Chainlik as its oracle network, leveraging Chainlink’s capabilities with Aave’s capabilities.
My bias: I like the entirety of Aave’s concept and execution so far. Their dedication to security by constant public audits and bug bounty programs speaks for itself. I also favor its partnership with Chainlink. In my subjective perspective, the risk-reward ratio leans toward the latter.
References:
https://medium.com/aave – constantly updated dev blog
https://github.com/aave/aave-protocol/blob/master/docs/Aave_Protocol_Whitepaper_v1_0.pdf
Disclaimer: I am by no means a cryptocurrency professional. I am a BS in Finance and approach my analyses through an economic and financial point of view. I do my best to integrate all current relevant information into analysis.
