Aave is a decentralized finance (DeFi) protocol that allows users to borrow and lend cryptocurrencies without the need for intermediaries. It originated from ETHLend, which was launched by Stani Kulechov in November 2017 and rebranded as Aave in September 2018.
Aave enables users to borrow and lend digital assets through liquidity pools. Lenders can deposit their assets into specialized liquidity pools and earn interest, while borrowers can collateralize their cryptocurrencies to access loans quickly.
Aave offers two types of interest rates for loans: fixed and variable. Fixed rates provide some cost certainty during periods of cryptocurrency market volatility. However, when borrowers anticipate a decline in prices, variable rates may be more advantageous.
Source: CoinMarketCap