Aave (AAVE), launched in November 2017 as ETHLend and rebranded in September 2018, is the native governance token of the Aave Protocol, a decentralized, non-custodial lending and borrowing platform on multiple blockchains, including Ethereum, Polygon, and Avalanche. Aave enables users to lend and borrow 20+ cryptocurrencies with variable or fixed interest rates, powering DeFi with $17.3B in total value locked (TVL). AAVE facilitates staking, governance, and fee reductions.

Key Features

  • Lending and Borrowing: Users lend assets to earn interest or borrow using crypto as collateral, with flash loans for instant, uncollateralized borrowing.
  • Multi-Chain Support: Operates on 10+ blockchains, including Ethereum, Arbitrum, Optimism, and BNB Chain, enhancing interoperability.
  • High TVL: Manages $17.3B in TVL, making it the leading DeFi lending protocol.
  • Ecosystem: Integrates with 30+ partners like Curve, 1inch, and Synthetix, supporting DeFi, NFTs, and stablecoins like GHO.

AAVE Token

  • Purpose: Used for governance, staking in the Safety Module (e.g., Umbrella), and reducing borrowing fees.
  • Supply: Circulating supply of ~15 million AAVE, with a max supply of 16 million.
  • Contract Address: On Ethereum, AAVE’s contract is 0x7fc66500c84a76ad7e9c93437bfc5ac33e2ddae9 (addable to MetaMask). CoinGecko CMC.

Who Are the Founders of Aave?

Aave was founded by Stani Kulechov, a Finnish entrepreneur, in 2017. Initially launched as ETHLend via a $16.2M ICO, it rebranded to Aave (Finnish for “ghost,” symbolizing transparency). The Aave team, with 29 members, is supported by the Aave DAO and investors like Blockchain Capital and Framework Ventures.

What Makes Aave Unique?

Aave stands out for its DeFi leadership:

  • Flash Loans: Enables instant, uncollateralized loans for arbitrage and liquidations, a DeFi innovation.
  • Safety Module (Umbrella): AAVE stakers backstop bad debt, earning rewards while enhancing protocol stability.
  • GHO Stablecoin: Aave’s USD-pegged stablecoin, launched in 2023, boosts liquidity and adoption.
  • Revenue Growth: Generated $63.8M in annualized expenses in 2025, outpacing all lending protocols combined.

AAVE Network Upgrades (2025)

  • Umbrella Safety Module (June 2025): Introduced aToken staking, reducing reliance on governance for risk management.
  • GHO Expansion (Q2 2025): Increased GHO adoption on BNB Chain, with $300M added to Pendle pools.
  • MiCA Compliance (June 2025): Partnered with StablR to align with EU’s MiCA regulations, enhancing stablecoin operations.

How Is AAVE Secured?

Aave and AAVE are secured through:

  • PoS Integration: Leverages host blockchains’ Proof-of-Stake (e.g., Ethereum, Polygon) for transaction security.
  • Safety Module: Staked AAVE mitigates bad debt, with Umbrella enhancing risk management.
  • Smart Contract Audits: Regular audits by firms like Trail of Bits ensure protocol and dApp safety.
  • DAO Governance: AAVE holders vote on upgrades, ensuring decentralized control and transparency.

Conclusion

Aave (AAVE) powers the leading DeFi lending protocol, offering innovative features like flash loans, multi-chain support, and the GHO stablecoin. With $17.3B in TVL, a robust DAO, and recent upgrades like Umbrella, Aave drives DeFi innovation in the $3.5T crypto market.