DeFi Fact-checked 2026-08-14

Aave

Established 2017

The largest lending protocol in DeFi — supply assets to earn, or borrow against them.

Aave runs decentralised money markets on a dozen chains: you deposit crypto to earn variable yield, or use deposits as collateral to borrow other assets. It's the deepest liquidity venue in DeFi lending, with features like flash loans and rate switching.

Quick facts

Founded

2017

Pros

Deepest lending liquidity in DeFi
Wide chain coverage and mature governance
Non-custodial with transparent, audited contracts

Cons

Liquidation risk if collateral values crash
Rates fluctuate sharply with utilisation
Smart-contract and oracle risk remains real

Best for

Earning yield on idle assets or borrowing against holdings

Fees

No deposit fees; borrow rates vary by asset demand, plus gas.

Security notes

One of the most-audited protocols in crypto. Watch your collateral health factor — liquidations are automated and unforgiving.

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Frequently asked questions

What is Aave?

Aave is The largest lending protocol in DeFi — supply assets to earn, or borrow against them. Aave runs decentralised money markets on a dozen chains: you deposit crypto to earn variable yield, or use deposits as collateral to borrow other assets. It's the deepest liquidity venue in DeFi lending, with features like flash loans and rate switching.

Is Aave safe to use?

One of the most-audited protocols in crypto. Watch your collateral health factor — liquidations are automated and unforgiving. As always, verify details on the official site before trusting funds to any service.

How much does Aave cost?

No deposit fees; borrow rates vary by asset demand, plus gas. Figures change — confirm current pricing on the official site before deciding.

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