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Why Aave & LEND Has CRAZY DEFI Potential!!πŸ’―

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πŸ“Ί Uniswap Video πŸ‘‰
πŸ“Ί Yield Farming πŸ‘‰


0:00 Intro
1:44 What’s Aave?
3:48 Aave Platform Overview
5:04 Utilizing Aave To Lend
7:30 Borrowing with Aave
9:08 Flash Loans
11:50 Liquidity Pool Token Lending
13:45 LEND Tokenomics
17:11 Credit score Delegation
19:02 Conclusion


⛓️ πŸ”— Helpful Hyperlinks πŸ”— ⛓️

β–Ί Web site:
β–Ί GitHub:
β–Ί Docs:
β–Ί Aavenomics Announcement:


πŸ“ What’s Aave? πŸ“

Aave is an open supply DeFi lending protocol that permits customers to earn curiosity on deposits and borrow a complete host of various cryptocurrencies. It was constructed on the Ethereum blockchain and is therefore utterly decentralised.

It was initially launched as Ethlend with an ICO again in 2017 however in 2018 they rebranded to Aave with a view to tackle their new kind.

At the moment they provide assist for lending of 17 totally different cryptocurrencies. Additionally they provide flash loans, uncollateralized loans, “charge swithching” and different unique options

πŸ“ˆοΈ How Aave Works πŸ“ˆ

While you provide tokens to lend out on Aave, they’re changed with aTokens. These will be considered as much like the cTokens that you’ve got over at Compound finance. The one distinction is that these are pegged to the worth of the underlying token and your stability will enhance as you earn curiosity.

You possibly can withdraw the liquidity everytime you need and when that’s executed, your aDai tokens shall be transformed again into the Dai tokens. This accretion doesn’t solely earn curiosity nevertheless it additionally serves as collateral ought to I wish to borrow any crypto.

🀝 Borrowing 🀝

When taking out a mortgage at Aave you’ll be able to both lend on the variable charge or you should use what is known as a “secure” charge. The latter acts like a set charge within the brief to medium time period. It may be rebalanced if there are extreme adjustments available in the market situations

At Aave, the mounted charge is all the time increased than the floating (to account for threat). The precise charge that you can be charged is dependent upon the utilization ratio within the pool.

When you find yourself lending, you must take care in regards to the liquidation ranges. There’s a 5% liquidation penalty that you’ll incur in case you are liquidated.

⚑️ Flash Loans ⚑️

These are uncollateralized loans that may be taken out right away. Simply so long as they’re repaid throughout the similar transaction, they’re permitted. If they don’t seem to be repaid, then the entire transaction is void and no funds would ever have been originated.

Aave was one of many first platforms to supply flash loans. These enable customers to raised participate within the DeFi house with arbitrage between Dexs and refinancing loans from mounted to floating charges and so on.

Flash loans have additionally been used with nice impact within the ever well-liked follow of Yield farming.

πŸ‘¨β€πŸ’»οΈ Liquidity Pool Tokens πŸ‘¨β€πŸ’»

Aave has opened up extra lending markets for Uniswaps liquidity tokens. This could enable customers to lend or borrow these tokens. You not should depend on their worth appreciation with a view to make some positive aspects on LP tokens.

It is a comparatively new addition which signifies that there isn’t any one supplying these tokens at present. However one hopes that as LP tokens begin gaining traction, an increasing number of customers will begin to provide them over on this market.

πŸ€– LEND Tokenomics πŸ€–

LEND is an ERC20 token that was issued on the Ethereum blockchain. There’s a whole provide that’s simply shy of 1.3 billion whereas 1 billion of these had been bought within the crowdsale.

The unique objective of the LEND token was to be a utility token. One which supplied customers with an a variety of benefits comparable to decreased charges, staking rewards and improved loan-to-value ratios.

When it comes to the present tokenomics, 80% of the buying and selling charges generated are used to buy LEND tokens and burn them. This subsequently signifies that the provision of LEND is reducing every day the extra charges which can be generated. The remaining 20% is then used with a view to incentivise extra liquidity.


πŸ“œ Disclaimer πŸ“œ

The data contained herein is for informational functions solely. Nothing herein shall be construed to be monetary authorized or tax recommendation. The content material of this video is solely the opinions of the speaker who will not be a licensed monetary advisor or registered funding advisor. Buying and selling Foreign exchange, cryptocurrencies and CFDs poses appreciable threat of loss. The speaker doesn’t assure any explicit end result.

#aave #ethereum #defi #ETH #crypto #lending #flashloan #yieldfarming

Source: Coin Bureau

44 Responses

  1. is Defi not going to create a bubble which will then burst as soon as crypto market looses 40% – which is common right? The lack of control around the collateral seems dangerous as it is possible to borrow in circle by just buying more crypto with the loan taken. The rate of 15% for the borrower indicates that they are ready to pay a huge premium in the belief that the return on the crypto bought with that money will exceed those 15%. It seems that at some point this will not be sustainable no?

  2. Jesus man. You should start your own coinbureau token and get paid for all these videos. I have to watch them at 1.5 to catch up.. I love my keep calm and hodl on shirt. Thanks Guy..

  3. Just to say thank you for your coverage and sharing your wide range of knowledge on these essential topics. Suddenly we are exposed to this and everybody sooner or later will need to know these essentials.

  4. Great video. Can someone explain to me how a loan can be overcollateralized though? I thought that was the point of a loan — you don't have enough money to, say, buy a house so you get a loan. If you have to collateralize as much (or more) than you're borrowing, why not just use the collateral instead?

  5. I'm having an issue with the app, I deposited some aave after connecting my coinbase wallet, paid a few fees and now I have my aave on the app BUT it is not in my wallet balance. I can't figure out how to get the aave into my wallet balance to use for staking. Have any idea why?

  6. I hate that this guy speaks in monotone and never switches up the manner in which he’s speaking. I wanted to learn about this stock so bad but this is not the video. I’m like drowning in boredom.

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