Plain English
Aave is the largest decentralized lending protocol by TVL. AAVE is the governance and safety-module staking token. Lenders deposit assets; borrowers post collateral and draw loans. Available across Ethereum, all major L2s, and Avalanche.
How it actually works
Aave V3 introduced isolated lending modes, e-mode (correlated-asset boosts for ETH-staking pairs), and portal cross-chain liquidity. The safety module — staked AAVE that can be slashed in case of shortfall events — provides protocol insurance. GHO, Aave’s native stablecoin, is borrowed against Aave deposits.
What it means for you
AAVE is one of the highest-quality DeFi tokens — established, audited, with mature governance and real revenue. For HNW positioning, AAVE is core DeFi exposure. Stake AAVE for safety-module yield (5–7% in AAVE) plus the protocol’s long-term fee accrual.
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Educational content only. Not investment, tax, or legal advice.