This is the second part of the DeFi series, if you haven't checked part 1, here's the link Getting started with DeFi Part 1.
Aave (which means ghost in Finnish),was founded in 2017, by Stani Kulechov to create a decentralized peer-to-peer or pool-to-peer lending platform. The original name of the platform was “ETHLend”, and it was launched on the Ethereum blockchain. It's same as any other DeFi systems out there , get a loan , lend your crypto, get intrest on them. Aave is a DAO(decentralized autonomous organization), means it's operated and run by people who hold the Aave token. Speciality of Aave is it's Pool-to-Peer lending system. When a user adds his/her tokens in the pool providing liquidity, the recive Aave version of it like aDai, aEth, etc. These a tokens help us to cut some slack on intrest rates. Providing pools with desperate need of funds will increase your rewards and vice versa. It's token is also called Aave and is currently ranked at 46 , and roughly 277 USD.
Yearn.finance was launched by developer Andre Cronje in early 2020. It was the fastest grown DeFi project at the time being. Yearn is like a set of programs or protocols build on Ethereum blockchain which focuses on maximizing the users profits by exchanging their deposits where higher Apy is given, like swapping between compound and Aave and so on. And the best part? It's all automated! It's main products are Earn and Vault. Yearn uses your crypto capital and moves it around pools. It's token Yearn is a governing token , like voting and etc. It's high price is driven by its scarcity, only 30k tokens are available. It also outperformed Bitcoin at a time.
This guy is different than others. It's built on BSC (Binance smart chain) , literally built different (pun ,ehm ehm). That means faster transactions and lower gas fees. In Venus protocol we deposit our crypto and get interest on it. And the best part? We can use it as an collateral and get loans in form of crypto currencies. I personally think it's best if a person knows what he/she is doing. Also the gas fees are also minimal owing to its built on BSC (binance smart chain). It has two other tokens XVS for governance, like validator and stuff , VAI is a stablecoin like DAI (stablecoin of maker dao). I think we should use Yearn and Venus to make some Juicy returns. But we should be careful while taking loans as collaterals might get liquidated if the price falls. So yeah, we should know what we are doing.(certainly not a financial advice)
The remaining ones will be discussed in upcoming parts. I'm keeping them short because people can get bored reading long articles. Theses are just a basic overview of what these projects do, do your research before investing, beware of scams and take care! Feel free to ask any questions.