What is Aave (LEND)? Aave is a decentralized financial protocol that allows people to lend and borrow cryptocurrencies. Lenders earn interest by depositing digital assets into specially created cash pools. Borrowers can use their cryptocurrencies as collateral to get a quick loan using this liquidity. Aave (meaning "ghost" in Finnish) was originally known as ETHLend when it launched in November 2017, but the rebranding to Aave took place in September 2018. (This helps explain why this token's ticker is so different from its own name!) LEND offers holders discounted fees on the platform and works as a governance token, giving owners a say in the future development of the protocol. Who are the founders of Aave? Aave and its predecessor ETHLend were founded by Stani Kulechov. At the time, he was frustrated with the lack of loan applications on Ethereum and his project was built before decentralized finance even existed. Kulechov is a serial entrepreneur who attended law school and started coding when he was a teenager. He was one of the early adopters of the blockchain space. The CEO said that he wants to change the name of ETHLend to Aave so that the company can offer a broader range of services beyond Ether lending. According to Kulechov, Aave's main target market is people who are already involved in the cryptocurrency community. What makes Aave unique? Aave has several unique strengths over competitors in an increasingly crowded marketplace. During the DeFi craze in the summer of 2020, it was one of the largest projects in terms of the total value of cryptocurrencies locked in its protocol. The project allows people to request and lend around 20 cryptocurrencies, which means that users have a greater number of options. One of Aave's flagship products is "flash loans," which have been heralded as the number one unsecured loan option in the DeFi space. There is a problem: they have to be refunded within the same transaction. Another big selling point is how those who borrow through Aave can switch between fixed and variable interest rates. While fixed rates can provide some certainty about costs in times of volatility in cryptocurrency markets, floating rates can be helpful if the borrower believes prices will decline in the near future. Learn more about Compound (COMP) here. (MKR) Tokens WorkLearn Cryptocurrencies With CMC AlexandriaCoinMarketCap Blog: Latest News & Features How many AAVE (loan) coins are there? As of this writing, LEND has a circulating supply of approximately 1.3 billion tokens. Circulation is tied to the total value locked in Aave, as the tokens are burned every time the protocol collects fees. An initial coin offering was held in November 2017, where $16.2 million was raised through the sale of 1 billion LEND tokens at a rate equal to $0.0162 a piece. At that time, 23% of the LEND tokens were allocated to their founders and the project. LEND tokens were built on the basis of the ERC-20 standard and are designed to be deflationary. In the event of a deficiency in the DeFi protocol, staking tokens would be used as collateral as a last resort. In July 2020, Aave revealed plans for a token swap. This means that the 1.3 billion LEND tokens in circulation would be exchanged for the newly minted AAVE cryptocurrency at a ratio of 1:100, creating a total supply of 16 million AAVE. (Three million of these would be held in reserve.) How is the Aave network protected? Aave's open source protocol is based on Ethereum, a blockchain that is currently transitioning from Proof-of-Work to Proof-of-Stake. Where can you buy Aave (LEND)? Some of the largest exchanges that list LEND tokens include CoinDCX, Binance, CoinBene, and OKEx. You can learn more about converting fiat money to cryptocurrency here.