Aave is a decentralized lending protocol that lets people lend, borrow and earn interest on crypto assets, without any middlemen.
So instead of relying on banks for these services, you rely on transparent, smart contracts that run on the blockchain.
We're all familiar with the concept of lending & borrowing 💰
But what if there was a way to do it without any middlemen? 👀
This is where @AaveAave comes into the picture 👻
So what is it, how does it work, and why is it important in DeFi? 🤔
Let's get into it 👇
Aave is a decentralized lending protocol that lets people lend, borrow and earn interest on crypto assets, without any middlemen.
So instead of relying on banks for these services, you rely on transparent, smart contracts that run on the blockchain.
They started as a peer-to-peer protocol that matched lenders to borrowers but later pivoted to a system where people borrow from liquidity pools and rebranded to Aave which is Finnish for ghost 👻
For lenders:
Anyone can deposit their crypto assets into a liquidity pool and earn interest on it
For borrowers:
Anyone can borrow crypto assets from a liquidity pool and pay interest on it
The rates are calculated algorithmically based on liquidity.
1. aTokens - issued against deposited assets to lenders, they increase proportionally with interest generated by the AAVE pool
2. $AAVE tokens - this is Aave's DAO token that also incentivizes borrowers
1. Regular loan - deposit collateral and borrow from the liquidity pool
2. Flash loan - borrow without any collateral (we'll explain)
The latter is @AaveAave's key feature ✨
Borrowers need to deposit collateral in the form of any accepted asset in the liquidity pool before they can borrow.
For example, you can put in $DAI as collateral and borrow $ETH from Aave.
Flash loans allow anyone to borrow assets instantly without having to put up any collateral. But there is a catch 😅
The flash loan must be issued and paid back with any interest and fees within a single block on the blockchain.
Flash loans are mostly used by traders who practice 'arbitrage' – an investment strategy in which an investor simultaneously buys and sells an asset in different markets to take advantage of a price difference to generate a profit.
We can categorize this into three main components:
1. Liquidity pools
2. Permissionless
3. Non-custodial
Let's break it down 👇
This removes the need to wait for a bank to match a borrower to a lender who's willing to lend at a fixed price and then pay the bank fees for that service.
Instead of trusting a centralized entity with your funds, it's in a secure liquidity pool 🤝
There are no gatekeepers or borders to entry. Anybody anywhere in the world now has access to acquiring low-interest loans without any barriers like credit scores, KYCs, employment status, etc.
No more barriers set by banks and high-interest rates ⚖️
For the first time, a non-person entity, like @AaveAave's lending smart contracts, is able to hold and manage real money.
When you deposit assets on Aave, nobody has control over your assets but you. This is not the case in traditional finance 🥲
@WhiteboardCryp1 also has a great explainer video if you want more specifics: https://t.co/Rzwh5wVb2Q
Our first index tracks the performance of 10 DeFi assets including $AAVE, with just a few taps on your phone 📲
Join the waitlist: https://t.co/xGHVV2k5Ue
Do follow us at @alongsidefi for more such threads as we're investing heavily in education ✨
Have a great day! ☀️
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One of the classic scanners very you will get strong stocks to Bet on.
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Viruses and other pathogens are often studied as stand-alone entities, despite that, in nature, they mostly live in multispecies associations called biofilms—both externally and within the host.
https://t.co/FBfXhUrH5d
Microorganisms in biofilms are enclosed by an extracellular matrix that confers protection and improves survival. Previous studies have shown that viruses can secondarily colonize preexisting biofilms, and viral biofilms have also been described.
...we raise the perspective that CoVs can persistently infect bats due to their association with biofilm structures. This phenomenon potentially provides an optimal environment for nonpathogenic & well-adapted viruses to interact with the host, as well as for viral recombination.
Biofilms can also enhance virion viability in extracellular environments, such as on fomites and in aquatic sediments, allowing viral persistence and dissemination.
Viruses and other pathogens are often studied as stand-alone entities, despite that, in nature, they mostly live in multispecies associations called biofilms—both externally and within the host.
https://t.co/FBfXhUrH5d
Microorganisms in biofilms are enclosed by an extracellular matrix that confers protection and improves survival. Previous studies have shown that viruses can secondarily colonize preexisting biofilms, and viral biofilms have also been described.
...we raise the perspective that CoVs can persistently infect bats due to their association with biofilm structures. This phenomenon potentially provides an optimal environment for nonpathogenic & well-adapted viruses to interact with the host, as well as for viral recombination.
Biofilms can also enhance virion viability in extracellular environments, such as on fomites and in aquatic sediments, allowing viral persistence and dissemination.
“We don’t negotiate salaries” is a negotiation tactic.
Always. No, your company is not an exception.
A tactic I don’t appreciate at all because of how unfairly it penalizes low-leverage, junior employees, and those loyal enough not to question it, but that’s negotiation for you after all. Weaponized information asymmetry.
Listen to Aditya
And by the way, you should never be worried that an offer would be withdrawn if you politely negotiate.
I have seen this happen *extremely* rarely, mostly to women, and anyway is a giant red flag. It suggests you probably didn’t want to work there.
You wish there was no negotiating so it would all be more fair? I feel you, but it’s not happening.
Instead, negotiate hard, use your privilege, and then go and share numbers with your underrepresented and underpaid colleagues. […]
Always. No, your company is not an exception.
A tactic I don’t appreciate at all because of how unfairly it penalizes low-leverage, junior employees, and those loyal enough not to question it, but that’s negotiation for you after all. Weaponized information asymmetry.
Listen to Aditya
"we don't negotiate salaries" really means "we'd prefer to negotiate massive signing bonuses and equity grants, but we'll negotiate salary if you REALLY insist" https://t.co/80k7nWAMoK
— Aditya Mukerjee, the Otterrific \U0001f3f3\ufe0f\u200d\U0001f308 (@chimeracoder) December 4, 2018
And by the way, you should never be worried that an offer would be withdrawn if you politely negotiate.
I have seen this happen *extremely* rarely, mostly to women, and anyway is a giant red flag. It suggests you probably didn’t want to work there.
You wish there was no negotiating so it would all be more fair? I feel you, but it’s not happening.
Instead, negotiate hard, use your privilege, and then go and share numbers with your underrepresented and underpaid colleagues. […]