What is Aave?

Aave is a decentralized money market protocol that enables users to lend and borrow cryptocurrency across a range of assets, currently involving 20 different collateral options. The protocol's native token is AAVE, which functions as both a utility and governance token, allowing the community to influence the protocol's development.

Lenders can earn interest by supplying liquidity to the protocol's pools, while borrowers utilize their crypto assets as collateral to access loans. The governance model fosters community participation in decision-making regarding the protocol's future direction.