Aave, a DeFi-based (decentralized finance) project surpassed its Maker Dao competitor in terms of total-value-locked (TVL, $1.4B). As per the latest reports on Tuesday, August 25, this is a sharp increase, a whopping 7.7% in the last 24 hours.
What is Aave? It is a Defi protocol that is open-source, and noncustodial in nature. This allows people to leverage a myriad of digital assets, and it is used to lend and borrow different cryptocurrencies, at variable and stable interest rates.
Aave is always being popular, and you can see it by following its TVL values. After the launch, it reached $5 million and it increased by 28,500%. On the other hand, Maker Dao reached $1.42 million TVL as on Tuesday. Another important aspect of this protocol is that you can ask for flash loans, in a single Ethereum transaction.
In these loans, you can ask for money without providing any collateral. That is if these loans are executed properly. This protocol can considerably lower the barrier of entry to the market. Another reason behind the popularity is that Aave’s UK-based entity Aave Limited has issued a license.
Aave was approved by the U.K. Financial Conduct Authority (FCA), in July 2020. Also, it has a website which contributes to the popularity.