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Difference between revisions of "Aave"
→Staking
(Created page with "Aave is a decentralized protocol where users can borrow tokens by depositing more collateral than what is being borrowed [https://docs.aave.com/portal/] == Governance == Aave Governance consists of the proposition and decision-making process for the different risk parameter changes, improvements and incentives that constitute the policies, and upgrades to governance itself. [https://docs.aave.com/aavenomics/governance] == Staking == Aave will be secured by a Safety Mod...") |
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== Staking == | == Staking == | ||
Aave | Aave is secured by a Safety Module (SM), a staking mechanism for AAVE tokens to act as insurance against Shortfall Events (events caused when borrowed coins > collateral coins, which cause defaults). Stakers earn AAVE as Safety Incentives (SI) along with a percentage of protocol fees. [https://docs.aave.com/aavenomics/flashpaper#aave-staking] | ||
== AAVE V1 == | == AAVE V1 == | ||
This project was launched in November 2017 as a P2P lending platform called ETHLend and later renamed Aave in September 2018. | This project was launched in November 2017 as a P2P lending platform called ETHLend and later renamed Aave in September 2018. | ||
The platform was created to allow lending in a decentralized manner between two users. Therefore, a peer-to-peer (P2P) model was used that allowed the exchange of information and money directly between users. | The platform was created to allow lending in a decentralized manner between two users. Therefore, a peer-to-peer (P2P) model was used that allowed the exchange of information and money directly between users. | ||
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== AAVE V3 == | == AAVE V3 == | ||
V3 is mostly about two things: risk awareness/mitigation, and capital efficiency | V3 is mostly about two things: risk awareness/mitigation, and capital efficiency | ||
As a result, V3 introduces “isolated markets” – this allows Aave governance to list assets as collateral faster, but only as a single source of collateral, and not as a bundle. Additionally, isolated markets will have supply caps controlled by the DAO governance and as that asset matures they can increase the ceilings until eventually turning off the isolation model or the particular asset. So it kind of allows asset scalability | As a result, V3 introduces “isolated markets” – this allows Aave governance to list assets as collateral faster, but only as a single source of collateral, and not as a bundle. Additionally, isolated markets will have supply caps controlled by the DAO governance and as that asset matures they can increase the ceilings until eventually turning off the isolation model or the particular asset. So it kind of allows asset scalability | ||