How does AAVE work?

Interest paid to lenders is collected from Aave borrowers via loans. As the interest on the loans is paid, lenders that have deposited crypto into an Aave liquidity pool earn some of that interest back in the form of the crypto deposited. Aave is a decentralized crypto lending platform that lets users borrow and lend crypto.

What is AAVE & Ethlend?

Aave's origins stretch back to 2017. Stani Kulechov and a team of developers released ETHLend in an Initial Coin Offering (ICO) in November 2017. The idea was to enable users to lend and borrow cryptocurrencies with each other by allowing users to post loan requests and offers.

How will lend convert to AAVE?

To migrate the LEND tokens to AAVE, the project will use what it calls an Aave Improvement Proposal (AIP), and more specifically a process called the Genesis Governance. According to the plan, LEND will convert to AAVE at a rate of 100:1, bringing the total LEND supply of 1.3 billion to a user-held AAVE supply of 13 million.

What is AAVE & makerdao?

The protocol has since grown to become one of the largest cryptocurrency lending protocols around, alongside rivals Compound and MakerDAO (the precise leader fluctuates all the time). As of this writing, Aave has over $6 billion in total value locked (TVL) across all chains. See also: How Does MakerDAO Work?