Aave Emerges As The Winner Of Lending and Borrowing Platform

If you have cryptocurrencies such as ETH, AVAX, MATIC, DAI, or USDT and you don’t have a plan to sell them. You can lend your crypto in lending platforms to earn passive income.

One of them is Aave. It is a lending and borrowing platform for cryptocurrencies. AAVE is a governance token of Aave.  Maximum supply of AAVE is 16 million AAVE.

Uniswap is the winner in decentralized exchange category. While, Aave emerges as the winner of lending and borrowing platform. Aave is the most successful lending platform in term of both TVL and market cap.

Aave supports 8 blockchains include:

1. Ethereum

2. Arbitrum

3. Avalanche

4. Fantom

5. Harmony

6. Optimism

7. Polygon

8. Metis

Aave supports more than 14 coins and tokens for lending and borrowing.

1. DAI

2. USDC

3. USDT

4. AAVE

5. BAL

6. LDO

7. LINK

8. CRV

9. MKR

10. ETH

11. WBTC

12. AVAX

13. FTM

14. SUSHI

Flash Loans

One of the advantages of Aave is that it launched the first uncollateralized loans besides normal lending. Flash loans let you temporarily borrow crypto assets with zero collateral.

There are 3 popular crypto lending platform. The first one is Aave. Follow by Compound. Compound is a lending platform with COMP as a governance token. The third one is Venus. If you don’t like ETH high gas fees. You can use Venus, it runs on BNB Chain.

Aave

TVL: $5.0 billion

Fully diluted market cap: $969 million.

AAVE ranks 49^th largest crypto by market cap.

Compound

TVL: $1.8 billion

Fully diluted market cap: $346 million.

COMP ranks 115^th largest crypto by market cap.

Venus

TVL: $ 782 million

Fully diluted market cap: $136 million

XVS ranks 310^th largest crypto by market cap.

(As of May 12, 2023)

Aave and Compound as well as Venus have been competing with each other to attract users. The result has come, Aave is the winner.