Decentralized finance (DeFi) is reshaping the crypto world. Aave has taken the bold step to pave way for the next generation DeFi applications. The platform innovative features will discern any decentralized finance goer.
The digital money market has come a long way with many projects without real world cases failing on the way. A small number of crypto projects still do not have any practical use but DeFi supporting ones are becoming the talk of town and here is why Aave (LEND) stands out from the crowded market.
Introduction of Flash Loans
Crypto lending and borrowing has always been a hard nut to crack. However, Aave has come up with a solution and the DeFi space is the perfect avenue to showcase the hidden decentralized finance potential. What’s more; users can borrow crypto without collateral.
Borrowing without collateral is one feature that has seen Aave adoption skyrocket in a short period. The platform is using the growing customer base to grow its market share and the future looks bright. You can borrow a wide range of digital assets that the platform supports.
Aave Meeting Consumer Demands
The introduction of flexible rates by Aave has not disappointed. This is a complete shift from the traditional fixed interest rates. Al you need is use the Swap Rate feature to take advantage of stable or variable rates.
The additional flexibility layer is ideal for DeFi lending. Modern day crypto traders adore flexibility and this is a big selling point for Aave.
Aave Peer-to-Peer Lending Touch
Another Aave striking feature is the credit delegation which takes peer-to-peer lending to the next level. You can take advantage of this and create credit lines that rely on platform usage by other participants. Obviously the delegator decides the amount, interest and repayment terms.
According to a tweet from the founder of the platform Stani Kulechov;
Credit delegation expands the DeFi narrative from deposit capital to source capital, scaling into financial debt markets worldwide and making it the backbone for global finance.
Transforming LEND from Utility Token
LEND was a utility token by design to ride on the ETHLend ecosystem. Rebranding to LEND has brought in new governance with the most sought after use cases. The platform has taken a decentralized outlook. The outfit is user centric and allows for voting on developer team proposals, deciding on interest rates, new asset listing and configuring liquidation.
The current LEND growth has seen investors benefit. This comes at a time when the DeFi hype has taken the crypto space by storm. However, Aave is not the sole player in the space and the growing number of DeFi project can ruin the party due to speculation. LEND spike appears to be driven by its real life use cases and the user quest to borrow.
Generally, the innovative DeFi space is offering real life solutions and comes at a time when users are being driven by COVID 19 to borrow and cushion their incomes. A lot is expected from the new crypto fad and all eyes are on LEND and similar platforms.