AAVE is the native governance token of the Aave Protocol, a leading decentralized finance (DeFi) lending platform that allows users to lend, borrow, and earn interest on cryptocurrency assets the need for a centralized intermediary. Built on Ethereum and later expanded to other networks like Polygon, Arbitrum, and Avalanche, Aave enables permissionless and trustless money markets, empowering users to deposit digital assets into liquidity pools and earn passive income or borrow against their holdings. Originally launched as ETHLend in 2017, the protocol rebranded to Aave in 2020 and has since become a cornerstone of the DeFi ecosystem. AAVE can be bought on specialized exchanges and AAVE can also be traded for using other cryptocurrencies.
Aave(AAVE) Price
USD$318.67 -2.20%
Price of Aave(AAVE) Today
The live price of Aave (AAVE) is $318.67.The current market capitalization stands at $4.84B, with a 24-hour trading volume of $901.01M.Aave has experienced -2.20% in the last 24 hours and has a circulating supply of approximately 15.20M.These figures are updated in real-time to provide the most accurate market data.
How do you feel about AAVE today?
Aave(AAVE) Profile
Price Range (24h)
24h Low: $317.06 24h High: $334.12
ATH
$661.69
Price Change (1h)
+0.43%
Price Change (24h)
-2.20%
Price Change (7d)
+6.70%
Market Cap
$4.84B
24h Vol
$901.01M
Circulating Supply
15.20M
Total Supply
16.00M
About
What Is AAVE?
Who Created Aave?
Aave was created by Stani Kulechov, a Finnish entrepreneur and lawyer, who founded the platform with the vision of democratizing finance through blockchain technology. The project began as ETHLend, a peer-to-peer lending protocol that evolved into Aave, a liquidity pool-based DeFi lending protocol.
The Aave protocol is now governed by a decentralized autonomous organization (DAO) where AAVE token holders vote on key decisions, upgrades, and treasury allocations.
How Aave Works
Aave uses a liquidity pool model where users deposit crypto assets into smart contract-based pools. These assets are then available for others to borrow at variable or fixed interest rates. Borrowers must provide overcollateralized loans, meaning they must deposit more value than they borrow.
The protocol includes several innovative features such as flash loans, stable and variable interest rates, collateral swaps in which borrowers can change their collateral without repaying the loan, and eMode that boosts borrowing power for correlated assets like stablecoins. Aave also supports staking, allowing users to stake AAVE tokens to secure the protocol and earn additional rewards.
What the AAVE Token is Used For
The AAVE token has several core utilities. It is used for governance as AAVE holders can vote on protocol changes, risk parameters, and funding proposals. Users can stake AAVE in the Safety Module to help backstop the protocol and earn yield. Some versions of the protocol also offer fee reductions for AAVE stakers or holders. AAVE tokens can be used to incentivize liquidity provision and protocol usage across networks. While AAVE is not required to use the platform, it grants holders significant influence over its long-term development and risk management.
AAVE Tokenomics
The AAVE token has a maximum supply of 16 million, with approximately 14.5 million currently in circulation. The token is deflationary, with a portion of protocol fees allocated for buyback-and-burn mechanisms, depending on governance decisions. In addition to voting rights, AAVE token holders can participate in staking via the Safety Module. This creates a backstop for the protocol in case of liquidity shortfalls, in exchange for AAVE-based incentives.
Aave(AAVE) Price Movements ($)
| Period | Amount Change | Change (%) |
|---|---|---|
| Today | -$7.17 | -2.20% |
| 7 Days | +$20.00 | +6.70% |
| 30 Days | +$36.95 | +13.12% |
Aave(AAVE) Conversion Rate
FAQ
What is Aave used for?
Aave is a decentralized protocol that allows users to lend and borrow cryptocurrencies without intermediaries. Lenders deposit assets into liquidity pools and earn interest, while borrowers can take overcollateralized loans in other assets. The protocol is fully non-custodial, meaning users retain full control of their funds at all times.
What can I do with the AAVE token?
The AAVE token is used for governance, allowing holders to vote on proposals that affect the protocol such as risk parameters, asset listings, and fee structures. AAVE can also be staked in the Safety Module, a backstop designed to protect the protocol from insolvency risks. In return, stakers earn rewards.
What are flash loans?
Flash loans are a feature unique to DeFi protocols like Aave. They allow users to borrow assets without collateral, as long as the loan is borrowed and repaid within the same transaction block. Flash loans are mainly used by developers and traders for arbitrage, collateral swaps, and debt restructuring.
Is borrowing on Aave safe?
Aave has been audited and battle-tested, making it one of the most trusted lending platforms in DeFi. However, borrowing always carries risks, such as liquidation if your collateral value drops too low. Aave uses real-time price oracles to monitor loan-to-value ratios and protect the system from undercollateralization.
On which blockchains is Aave available?
Aave is a multichain protocol available on several blockchains to reduce gas fees and increase accessibility. These include Ethereum, Polygon, Arbitrum, Optimism, Avalanche, and more networks may be supported as the Aave DAO votes on additional deployments.
Where can I buy and store AAVE?
You can buy AAVE directly on Phemex, and we’ll securely hold it on your behalf as a custodial exchange. You can also use other cryptocurrency, like USDT, to trade AAVE on the Phemex spot market. After acquiring AAVE, it will be held in your Phemex spot wallet which boasts meticulous security mechanisms.