Description
Aave offers a decentralized, non-custodial liquidity protocol for lending, borrowing, and earning interest on crypto assets. Its community-driven governance process involves AAVE, stkAAVE, and aAAVE token holders in decision-making. Ideas are discussed in the Aave Governance Forum, polled on Snapshot, and, if supported, become Aave Improvement Proposals (AIPs). AAVE tokens, capped at 16 million, are used for governance and protocol security.
Value Proposition
Aave provides a decentralized, non-custodial liquidity protocol that enables users to lend, borrow, and earn interest on crypto assets without intermediaries.
Governance
Aave's governance process is designed to be community-driven and decentralized, allowing AAVE, stkAAVE, and aAAVE token holders to participate in decision-making for the protocol. Aave's governance process starts with discussions on the Aave Governance Forum, where ideas become Aave Requests for Comments (ARCs). A Snapshot poll gauges community sentiment off-chain. If supported, the idea becomes an Aave Improvement Proposal (AIP), including proposal text on IPFS and an implementation plan.
Tokenomics
Aave's tokenomics revolve around its native token AAVE. The total supply of AAVE tokens is capped at 16 million. AAVE tokens have two primary use cases: governance and protocol security.
Previous Funding
Aave, originally known as ETHLend, initial funding came through an ICO and venture capital investments.
- Aave conducted an ICO in November 2017 to raise the initial funds for the project.
- In total, Aave has raised $49 Million through 9 different funding rounds.
