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- Aave has features like ‘Flash Loans’, which allows them to borrow without any collateral.
- AAVE holders can stake their tokens as Safety Module and earn Safety Incentives, wherein they receive rewards for securing the network.
- The community-led grants programme will fund several developer projects on the AAVE platform.
Bitstamp had recently added AAVE to the list of assets that can be traded at the exchange. Bitstamp also posted a blog wherein they interviewed the CEO of Aave, Stani Kulechov. The interview provided different aspects of this new open-source protocol and its offer to the decentralized finance community.
AAVE’s Biggest Milestone was Handing the Keys of Governance to the Community
Several DeFi protocols have emerged, and Aave is one of those several DeFi liquidity providers. According to the CEO, what sets it apart from other protocols is the intricacy and innovations that have been put in the project and its features. Aave has features like ‘Flash Loans’, which allows them to borrow without any collateral. Moreover, AAVE holders can stake their tokens as Safety Module and earn Safety Incentives, wherein they receive rewards for securing the network. Kulechov said that their most significant milestone was handing over the keys to the DeFi community for the protocol’s governance.
Ethereum is the Best Platform to Build DeFi Protocols
The CEO believes that Ethereum acted as a catalyst for the immense growth of decentralized finance. On being asked about their decision to build the protocol on Ethereum, Kulechov said that there are many great projects on Ethereum. Owing to DeFi’s composability, they can integrate other DeFi projects. This has allowed them to grow as well as stay interconnected with the community. According to him, the only thing that is stopping people from investing in crypto is their inability to understand and mitigate risks in investing.
AAVE’s Innovation is entirely in the hands of the community. The users can create a vote of proposals for what they want AAVE to work on. The community-led grants programme will fund several developer projects on the AAVE platform. Kulechov thinks in the next ten years time frame, DeFi will undergo mainstream adoption.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
