WHAT IS AAVE ABOUT?

WHAT IS AAVE ABOUT?

By PorshDan | Portia's Diary | 4 May 2021


When I saw AAVE, the first thing that came in mind was African American Vernacular English which is not grammatical in standard English. Occasionally as (Ebonics), simply as Black English (BE), is the variety if English natively spoken, particularly in Urban communities, by most working and middle-class African American and Black Canadians. This was what I thought until I found out something entirely different.

WHAT IS AAVE?
Aave is a Decentralized money market protocol that enable users to lend and borrow cryptocurrencies in a trustless manner. There is a wide variety of cryptocurrencies to choose from,and Have offers both stable and variable interest rates to its interest.

Aave(AAVE) is an Ethereum token that powers AAVE, a decentralized non-custodial money protocol where users can participate as depositors and borrowers. Depositors provide liquidity to the market to earn a passive income while borrowers are able to borrow cryptocurrencies in exchange for paying interest rate.

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Aave- Open Source DeFi Protocol
Aave- is an Open Source and Non-custodial protocol to earn interest on deposits and borrow assets.


IS AAVE A GOOD INVESTMENT?
If you want to invest in digital currencies, the AAVE coin may be a profitable option for you. With five years of the investment plan, AAVE price is expected to be $1000 plus.


HOW DO I GET AAVE CRYPTO?
STEP 1: Choose your order type. The type of order you choose will determine when your order is filled and how much you pay for each coin.

STEP 2: Decide how much AAVE you want to purchase.

STEP 3: Place your order.

STEP 4: Wait for your broker to fill your order.


WHAT WALLET SUPPORTS AAVE?
AAVE is currently supported on Coinbase Pro.

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HOW AAVE WORKS
To transact on AAVE, lenders must deposit funds into liquidity pools, and users can then borrow from these pools. Each pool sets assets aside as reserves to hedge against volatility. These reserves also help ensure that lenders can withdraw their funds when their ready to exit the protocol.

ADVANTAGES OF AAVE
1. FLASH LOANS(UNCOLLATERALIZED LOANS)
Users must pay the loan back within the same transaction. The user must repay the loan amount by the time the next block is mined. If not, every transaction that has occurred with the borrowed funds will be cancelled.

2. INTEREST RATE SWITCHING
Users can switch between stable or variable interest rates. This ensures they can get the best rate for the loan.

3.UNIQUE COLLATERAL
AAVE has the most diverse range of DeFi collateral in the space. Besides the more popular tokens like ETH, DAI and USDC, borrowers will soon be able to take out positions on UniSwap LP tokens and Token Sets.

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Aave allows you to deposit and borrow different types of cryptocurrencies while earning on your deposited collateral. Borrowed assets will accrue an annual interest to that needs to be paid back when you're done with the loan,but this accrual can be switched between a variable or stable rate.
You need a wallet to deposit or borrow assets with Aave which currently is Coinbase Pro.


USING AAVE TO EARN ON DEPOSITED ASSETS.
STEP 1: Head to MEW and select 'Access my Wallet'.

STEP 2: Select 'Dapps', then choose 'Aave'.

STEP 3: Click 'Deposit' to see the full assets you can deposit. The earning rates for each currency are listed under the 'APY' selection.

STEP 4: After depositing, you will be sent 'a Token', which will be pegged 1:1 with the asset you've deposited. Once you withdraw your deposited assets,extra funds are earned through the ' a Token' will be credited to your account.


USING AAVE TO BORROW ERC20 TOMENS AND STABLECOINS
STEP 1: You'll first deposit assets e use as collateral, which can be completed in the section above. After you're done, head to the 'Borrowings' tab on the Dapp.

STEP 2: Select 'Borrow' to see the full list of assets you can borrow.

STEP 3: You will need to choose between stable and variable rate of interest. Choose the rate that works best for you, listed under the 'Stable APY' and 'Variable APY' categories. Some assets offer both options, while others, only one.

STEP 4: You can borrow multiple types of assets, but make sure the amount you've borrowed is in relation to the amount you've deposited.

STEP 5: When you're paying back your borrowed assets, you'll need to pay a little extra to cover any interest occurred during the loan period.

 

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CREATING A WALLET
STEP 1: Head to www.myetherwallet.com.

STEP 2: Click 'Create a New Wallet'.

STEP 3: Choose the 'By JSON File' option.

STEP 4: Enter a strong password, and write it down on paper.

STEP 5: Download your JSON File, preferably to a USB device.

STEP 6: Now you're done, and ready to access your wallet.


HOW TO ACCESS YOUR WALLET
STEP 1: On the MEW front page,select 'Access My Wallet's.

STEP 2: Choose the 'software' option to connect, then select 'Private key' and click 'continue'.

STEP 3: Copy and paste your private key into the value field.

STEP 4: Click 'Unlock Wallet' and you're done!.

 


PorshDan
PorshDan

I am looking forward to make a meaningful impact in my world. Follow my write ups


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