What is Aave (AAVE)?

AAVE is an emerging native token of a DeFi protocol AAVE that connects cryptocurrency lenders directly to borrowers. Originally launched as an Initial Coin offering in 2017, the Aave protocol facilitates lending and borrowing in over 30 cryptocurrencies. Initially known as ETHLend the platform rebranded as AAVE one year after its launch. It was founded by Stani Kulechov to cater to the lending and borrowing needs of crypto investors. It runs on the Ethereum blockchain through smart contracts that manage the lending pool assets through a distributed network of computers. AAVE is the governance token of the Aave protocol enabling AAVE holders to govern the network. Aave's "Flash Loan"" facility is the prominent innovation that instantly issues certain loans and settles with no upfront collateral.

How does Aave (AAVE) work?  

Aave enables Ethereum users to earn interest or take loans through smart contracts eliminating the need for middlemen to complete the process. The Aave protocol autonomously decides the interest rates on any loan based on the funds available in the lending pool of Aave protocol.

The protocol manages its money market through the two types of tokens: aTokens and AAVE tokens. The aTokens are issued to lenders who lock their holdings in the pool so they can collect interest on deposits. These aTokens are pegged in 1:1 ratio to their lending tokens.

Simultaneously, AAVE tokens offer multiple advantages to their holders. For instance, AAVE borrowers do not have to pay the fee charges if they take out loans denominated in the token. Borrowers also get discounts on fees if they use AAVE as collateral. Those who use AAVE holdings as collateral may be able to borrow slightly more.

Most of the time, the lending pool of Aave protocol poses more liquidity than required by loan borrowers. This extra liquidity is managed by the Flash loan facility of Aave. Through this, the users can borrow a large amount of cryptocurrency without collateral; however, they have to return it within the same transaction. The Flash loan facility has significantly contributed to the popularity of Aave Protocol.

How to Buy Aave (AAVE) in India?

There are many platforms where you can invest and trade AAVE in India.

One such platform is Flitpay. To buy AAVE in INR, you have to sign up for the relevant application, where you will have to enter the required details and go through a small KYC verification process.

After the KYC approval, make sure you have correctly entered your bank details. Now, through the linked bank account, deposit the amount you want to buy AAVE, and execute the AAVE purchase.

You can instantly convert your INR to AAVE and AAVE to INR and withdraw your INR through bank transfers whenever you want.

Flitpay also keeps introducing timely rewards for its users.

What Do I Do After Buying Aave?

AAVE can be used to buy other cryptocurrencies after converting them to INR through crypto exchange platforms like FLITPAY. You can also hold AAVE till it reaches a high price and then can sell it through the FLITPAY OTC order facility. Users can earn significant profit from buying it at a lower price and selling it at a higher price.

Besides that, the AAVE token holders have many advantages in the Aave protocol. If they offer AAVE tokens as collateral for lending loans, they may get discounts on the trading fees.

FAQs

What is Aave Token (AAVE)?

AAVE is the ERP-20 compatible native token of the Aave protocol that runs on the Ethereum blockchain and helps in the governance and fee payment for lending and borrowing services through its DeFi protocol. 

What is the Aave (AAVE) price in India?

Check out the current INR price of AAVE token in India on Flitpay.

Which is the best platform to buy Aave (AAVE) in India?

The best platform to buy AAVE or your favorite cryptocurrencies in India is Flitpay. Flitpay supports instant UPI and bank deposits and bank withdrawals with a minimum deposit and withdrawal limit of INR 100.

What are the Benefits of Aave (AAVE)?

The AAVE tokens offer multiple advantages to their holders. For example, AAVE borrowers do not have to pay the fee charges if they take out loans denominated in the token. Borrowers also get discounts on fees if they use AAVE as collateral. Those borrowers who use their AAVE holding as collateral get the benefit to borrow slightly more.

Is it safe to invest in Aave (AAVE) in India?

Yes, investing and trading AAVE is Safe in India. Flitpay is one of India's most secure cryptocurrency exchanges for buying AAVE in India. It offers real-time prices and advanced investing features.

Is Aave (AAVE) a Good Investment?

AAVE is counted as one of the best DeFi tokens in the current market. Its use cases in the DeFi protocols of Aave make it a crucial part of the whole Aave protocol system. But cryptocurrencies can be highly volatile at times hence one needs to be careful while making any investment decision.