What it means
One of the largest open lending protocols, where people supply tokens to pools and others borrow them against collateral.
Aave runs on many networks, including Base. Rates are set by each pool's use: the more is borrowed, the higher the rate for both sides.
How it works
Aave is one of the audited markets you can use from Defied's Markets.
Related terms
| Term | What it means |
|---|---|
| Lending market | An onchain pool where people supply money that others borrow, with the interest paid by borrowers going to those who supplied it. |
| Collateral | What a borrower deposits to secure a loan, which the protocol can sell if the loan isn't safe any more. |
| Liquidation | When a lending protocol sells a borrower's collateral because its value has fallen too close to the loan. |
This glossary explains terms in general. It isn't investment, tax or legal advice.