Aave (AAVE)

Governance

Aave tokens are used to vote on and decide the outcome of Aave Improvement Proposals (AIPs), which shape how the Aave Protocol evolves.

Staking

Aave tokens can be staked in the protocol's Safety Module to act as a backstop in case of a shortfall event, earning incentives for doing so.

Lending and Borrowing

Aave is a decentralized liquidity protocol where users supply crypto assets to earn interest or borrow assets by providing collateral. This happens without a central authority.

Liquidity Provision

Users supply cryptocurrencies into Aave’s liquidity pools, earning interest while enabling others to borrow.

Collateral Management

Users can swap collateral within the protocol to manage risk or take advantage of market changes, like switching between ETH and stablecoins.

For more details, visit aave.com.

Pros of Aave

• Decentralized lending platform supporting many Ethereum-based tokens like ETH, MATIC, and WBTC.
• No identity verification needed, making it easy to use.
• Users earn interest by depositing tokens, with yields ranging from about 4.78% to 13.49%.
• Offers unique features like flash loans (borrow without collateral if repaid quickly) and aTokens that earn interest.
• Supports multiple Ethereum-compatible networks such as Arbitrum, Optimism, and Polygon for faster and cheaper transactions.
• Strong community and ongoing upgrades (like Aave V3 and V4) improve security, risk management, and user experience.
• Users can create custom money markets to improve loan services for borrowers and lenders.
• Transparent and non-custodial platform, meaning users control their funds through their own wallets.

Cons of Aave

• Gas fees on Ethereum can be high, making some transactions costly.
• Smart contract risks exist, as with all DeFi platforms.
• No traditional consumer protections since it’s decentralized.
• Competition from other DeFi lending platforms is strong.
• Some users find the platform complex at first, though documentation and community support help.

For more details, visit the official Aave website or community channels.

Founders

Aave was founded by Stani Kulechov, who is also the CEO. He started the project in 2017 originally under the name ETHLend before rebranding it to Aave.

There are no other co-founders officially listed; Stani Kulechov is recognized as the sole founder.

Institutional Investors

Aave has around 41 institutional investors including well-known names like Three Arrows Capital, Standard Crypto, Blockchain Capital, Blockchain.com Ventures, ParaFi, Framework Ventures, and FJ Labs.

Venture Capital Firms

Some of the key venture capital investors in Aave include Blockchain Capital, Standard Crypto, and Framework Ventures. These firms have participated in funding rounds to support Aave's growth.

Strategic Investors

Blockchain.com Ventures and other strategic investors have contributed to Aave’s funding, helping the project expand its team and market reach.

Recent Investors

More recent investors include ICONIUM and Caesar Chad, who have joined the list of backers supporting Aave’s development.

For more details, you can visit Aave’s official profiles on funding platforms like Tracxn, Crunchbase, or PitchBook.

Halal Status

No, Aave is not halal.

Reason

Aave is considered haram because it is based on lending activities that involve interest (riba), which is prohibited in Islamic finance. Multiple Islamic scholars and Shariah boards agree that Aave’s ecosystem supports interest-based lending, making it non-compliant with Shariah principles.