What is Aave?

Aave is a decentralized money market protocol that enables users to lend and borrow cryptocurrencies using various assets as collateral. The protocol supports lending and borrowing across 20 different assets and relies on a liquidity pool model where users provide liquidity.

The native token of the protocol is AAVE, which serves as a governance token allowing community members to participate in decision-making processes regarding the protocol's development. Users can earn interest by contributing liquidity, while borrowers can obtain loans by collateralizing their cryptoassets.