As part of decentralized finance (DeFi), this cryptocurrency is used to coordinate transactions on a decentralized lending marketplace. Aave allows to make loans (crowdlending) and to form lending pools with various other cryptocurrencies (e.g., ETH, DAI), as well as to conduct asset (digital asset) and collateral exchanges. Aave’s liquidity token is based on Ethereum’s ERC-20 token and has also been used to establish other decentralized exchanges (DEX) such as Uniswap.
More Term Definitions
