The best cryptocurrency platform based on the Ethereum network, that allows its users to borrow and lend crypto is AAVE. It emerged as a result of increased demand for decentralized finance and blockchain systems. This offers a native crypto token, named AAVE that can be traded on reputed exchanges. AAVE has a unique working way and methods that differentiate it from other conventional cryptocurrency platforms. We can call AAVE a decentralized crypto lending platform.
Here you can take a loan and lend in the form of cryptocurrencies by giving Collateral, that too must be in the form of crypto tokens.
AAVE works on the overcollateralized principle, which is you need to submit or deposit crypto that is worth more than the amount of crypto you desire to buy. AAVE is making a lot of impact on decentralized finance and creating a monetary trend.
Working MethodAAVE protocol works in the way of automated loans directly provided by Aave liquidity pools. The lenders can deposit their possessions in the form of cryptocurrency in the liquidity pool and receive interest based on the amount they have deposited.
