Aave

Aave

Aave (formerly EthLend) is a DeFi platform that offers crypto savings accounts and crypto loans. Like most other DeFi platforms, Aave is more suited for experienced crypto investors that have a deep understanding of the asset class.

Savings Accounts
17
Collateral
17
Loans
Clarity of interest policies
Jurisdictions
200+
Languages
EN + 4
CeFi/DeFi
DeFi
Business Accounts

Pros

  • As KYC is not necessary, there is no onboarding and the app can be used immediately

    Account Opening

  • Interest is accrued and compounded in real-time

    Compound interest

  • Aave does not have a tier system. Accordingly, both savers with a low investment amount (Shrimp) and savers with a high investment amount (Whale) receive the same interest rate.

    Savings Accounts

  • Borrowers can choose between variable and fixed interest rates

    Base Rate (loans)

  • Interest rates are calculated transparently based on risk and utilization rate

    Base Rate

  • There is no maximum or minimum loan amount

    Crypto-loans

  • There is no maximum or minimum deposit

    Savings accounts

  • There are no withdrawal limits

    Withdrawal Limits

  • Aave offers the flash loan functionality, but there is little experience with these kind of loans

    Crypto-loans

All pros

Cons

  • The app is not easy to use for noCoiners but more tailored to experienced crypto users

    Look & Feel

  • Interest rates fluctuate significantly, making it more difficult to plan ahead

    Base Rate

  • Aave users can only use Ethereum-based cryptocurrencies

    Currencies

  • The protocol includes a liquidation penalty of 5% if a loan is liquidated

    Fees

  • Die Zinsen unterscheiden sich abhängig davon ob man Aave Protokoll Vs.1 oder Vs. 2 wählt. Das kann verwirrend sein

    Nachvollziehbarkeit der Zinsen

  • Aave users don't get a margin call but have to keep an eye on their LTV ("health factor") by themselves

    Loan Liquidation

  • Aave is only available on desktop

    Mobile App

All cons

The interest rates at Aave

  • Earn Interest
  • Borrow Money
BAT
BAT
BUSD
BUSD
DAI
DAI
ETH
ETH
KNC
KNC
AAVE
AAVE
LINK
LINK
MANA
MANA
MKR
MKR
REP
REP
SNX
SNX
SUSD
SUSD
TUSD
TUSD
USDC
USDC
USDT
USDT
WBTC
WBTC
ZRX
ZRX
Basic
Max
0.1%
0.2%
0.3%
0.1%
0%
0%
0%
0.1%
0%
0%
0%
0.7%
0.3%
1.2%
0.1%
0%
0%
0.1 - 3%
0.1 - 1.3%
0.2 - 9.3%
0.3 - 12%
0.1 - 8%
0 - 0.7%
0 - 6.4%
0.1 - 3%
0 - 3%
0%
0 - 18.6%
0.7%
0.1 - 12%
0.4 - 12%
0.1 - 12%
0%
0 - 0.7%

How to earn the highest interest rates with Aave

check-circle-orange

There is no difference between base and maximum interest rate, as the Aave lending rates depend on supply and demand.

BAT
BAT
BUSD
BUSD
DAI
DAI
ETH
ETH
KNC
KNC
AAVE
AAVE
LINK
LINK
MANA
MANA
MKR
MKR
REP
REP
SNX
SNX
SUSD
SUSD
TUSD
TUSD
USDC
USDC
USDT
USDT
WBTC
WBTC
ZRX
ZRX
Basic
Min
0.1%
0.1%
1.7%
1.7%
1.5%
1.5%
1%
1%
0.2%
0.2%
0.5%
0.5%
0.8%
0.8%
0.1%
0.1%
0.3%
0.3%
3%
3%
2.5%
2.5%
1.9%
1.9%
3.2%
3.2%
1.5%
1.5%
0.1%
0.1%
0.2%
0.2%
Basic
Min
0.5%
0.1%
1.3%
1%
7.7%
0%
9.5%
0%
0.6%
0.2%
0.5%
0.5%
5.2%
0%
0.1%
0.1%
0.3%
0.3%
2%
1%
2.5%
2.5%
8.2%
0%
8.7%
0%
8.1%
0%
0.1%
0.1%
3.6%
0.2%

How to get the cheapest crypto loan with Aave

check-circle-orange

There is no difference between base and minimum interest rate, as Aave lending rates depend on supply and demand. Borrowers can choose either a fixed or a variable interest rate. However, rates can differ depending on the user selecting Aave protocol vs. 1 or vs. 2.

For Expert-Lenders

Aave is a DeFi platform, which has advantages and disadvantages. It's great that Aave calculates interest rates in real-time and the team behind the platform makes a legit impression in interviews and on events. For those who are interested in DeFi lending, Aave is well-worth observing, especially their work in the area of crypto flash loans.

Aave

Aave in the CryptoStudio-Check

Overview
Platform Score
based on 5 categories
Search icon Savings Accounts
based on 9 criteria
Search icon Crypto-Loans
based on 10 criteria
Search icon Security
based on 8 criteria
Search icon User Experience
based on 13 criteria
Search icon Business Review
based on 5 criteria

Savings Accounts
Rating:
Search icon Currencies:
17: BAT, BUSD, DAI, ETH, KNC, AAVE, LINK, MANA, MKR, REP, SNX, SUSD, TUSD, USDC, USDT, WBTC, ZRX
Search icon Shrimp:
All investors receive the same interest regardless of the amount invested, so there is no distinction between Shrimps and Whales. Aave pays an interest of 0% on BTC, 0.1% on ETH, 0.1% on USDT.
Search icon Whales:
All investors receive the same interest regardless of the amount invested, so there is no distinction between Shrimps and Whales. Aave pays an interest of 0% on BTC, 0.1% on ETH, 0.1% on USDT.
Search icon Options to earn higher rates:
There are no options to increase the interest rate at Aave
Search icon Lock-up Periods:
Flexible
Search icon Minimum Deposit:
No minimum deposit
Search icon Withdrawal Limits:
Unlimited
Search icon Currency of Interest Payments:
"In-kind" (same currency as deposit currency)

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Crypto Loans
Rating:
Search icon Maturity:
There is no maturity date, the loan works like a credit line
Search icon Minimum Loan:
No minimum
Search icon Maximum Loan:
No maximum
Search icon Loan currency:
Crypto
Search icon Accepted Collateral:
17
Search icon Loan Liquidation:
The liquidation threshold depends on the loan currency, usually, it's around 80%. There are no margin calls and Aave charges a liquidation fee of around 5%
Search icon Stress Test:
As a DeFi platform, Aave's liquidation procedures are purely smart contract-based, meaning there are no human employees who can step in during situations like in March 2020. That said, Aave's liquidation procedures worked well during the flash crash
Search icon Base Rate:
Stable and variable rates, which vary widely depending on the collateral currency. WBTC-secured loans currently cost [variable borrow_rate WBTC] and ETH-secured loans cost 1.00%
Search icon Minimum Interest:
There is no difference between base and minumum rates. Borrowers can choose between a stable and variable rate
Search icon Loan to Value Ratio:
Depending on the currency of the collateral

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Security
Rating:
Search icon Withdrawal Speed:
Unlimited
Search icon Regulations:
As Aave is a DeFi platform it is not regulated
Search icon Team Transparency:
The founder makes public presentations and is visible at conferences. The website mentions the team members but without surnames or contact details
Search icon Crypto-Custody:
No third-party custody service, the user is responsible for custody
Search icon Security Settings:
Aave does not offer a wallet, meaning users are mostly responsible for their own security. Depending on the user's level of experience, that can be an advantage or a disadvantage
Search icon Terms & Conditions:
As Aave is a DeFi platform, it does not have any legally binding terms and conditions
Search icon Transparency:
There is comprehensive documentation available on Github, AuM and the number of users are transparent
Search icon Security Hacks:
There are no reports about any successful security hacks

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User Experience
Rating:
Search icon Account Opening:
No registration needed
Search icon Business Accounts:
Yes
Search icon Mobile App:
No app available
Search icon Desktop App:
Yes
Search icon Wallet address book:
Yes
Search icon Reporting:
Aave does not offer any reporting functionalities. Users can use third-party apps to generate their own reports
Search icon Coin-Reporting:
Aave provides a reporting in the respective cryptocurrency and in US dollar
Search icon Look & Feel:
Feature-rich, but confusing for crypto lending beginners
Search icon Customer Service:
There is no customer support
Search icon Clarity of interest policies:
Aave's interest rates are transparent
Search icon Countries:
200+
Search icon Fees:
There are transaction fees for Ethereum blockchain usage and liquidation fees if loans are liquidated
Search icon Languages:
EN + 4

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Business Review
Rating:
Search icon Financing:
Aave (ETHlend at the time) raised $16 milllion with an ICO in 2017
Search icon CEO Track Record:
Founder Stani Kulechov has had almost no management or entrepreneurial experience before launching Aave. As Aave is a DeFi platform, his function is not comparable to a CEO of a private company but more to a community organizer
Search icon Assets under Management:
10.6bn USD assets locked on the protocol, this figure is publicly available (as of May 2022)
Search icon User Base:
The user number is unknown, but the Aave protocol itself has 110,469 token holders (as of Mai 2022)
Search icon Community Interaction:
Participates in the public discussion online. As Aave is a DeFi platform, there is not much focus on engaging with the end-user

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Aave

Aave Look & Feel

As Aave is a DeFi platform, there is no KYC and registration, there is no wallet administration, and no customer support. The user interface can be confusing for inexperienced crypto users and the app is only available on desktop.

Registration process

Registering with Aave is easy and straightforward and takes only a few minutes.

Step 1

Aave is only available on desktop, there is no Android (APK) or iPhone (iOS) mobile app to download. Go to www.aave.com and click "Enter app."

Step 2

Choose your wallet to connect with Aave's DeFi protocol.

Step 3

You can also connect with Aave through Metamask.

Step 4

The green dot in the upper right corner confirms that your wallet is connected with Aave. Be aware that there are two protocols, Aave V1 and Aave V2, which offer different rates.

All information is unofficial and subject to change. Links marked with an asterisk (*) may be affiliate links

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