Aave

Definition ∞ Aave is a decentralized finance protocol. It permits users to lend and borrow cryptocurrencies without intermediaries. Participants supply digital assets to liquidity pools, earning interest, while borrowers can obtain loans by providing collateral. The protocol operates on various blockchain networks, enabling a range of financial services within the decentralized ecosystem.
Context ∞ Aave consistently stands as a prominent DeFi lending platform. Its ongoing development includes expanding to new blockchains and enhancing its risk management frameworks. Discussions frequently revolve around governance proposals and market liquidity conditions impacting its lending pools.