AAVE raises US banks aside with a record of $ 50 billion in net deposits star-news.press/wp

To put them in the right quorum, AAVE deposits are now competing with some medium -sized banks in the United States, according to the federal reserve data available to the public. For example, AAVE is ranked slightly higher than Bok Financial Corporation and the lowest UMPQUA in total deposits Data From the federal statistical reserve.

What is AAVE

Built on Ethereum Blockchain, AAVE is a DEFI platform that allows people to lend and borrow encrypted currencies without the need for banks or intermediaries. Think about the matter as the global digital lending market where anyone with access to the Internet can gain interest in encrypting it or obtaining loans by offering guarantees, all of which are done through smart contracts, which are a mechanism and implement computer programs.

The word “AAVE” means “Ghost” in Finnish, symbolizing somewhat invisible nature, but it is strong for decentralized financing that works without traditional institutions. Since its inception, AAVE aims to make lending and borrowing easier, transparent and effective by getting rid of the usual financial gates guards.

KULECHV launched the project in 2017 as Ethlend, a penetration market to an counterpart based on ETHEREUM smart contracts. By 2018, the project was renamed to AAVE, which reflects a broader ambition to develop into a large -scale open source liquidity protocol.

Under the leadership of KULECHV, what started as a small group of Blockchain fans to one of the most popular difference in decentralized financing. AAVE has attracted a global network of developers, investors and users, all of which are attracted to its mission of reshaping the access to financial services.

This task was driven by a clear problem: the traditional banking system often proves slow and costly, and hated for many, especially those who have no strong credit history or access to official institutions. AAVE aims to provide an involuntary alternative where anyone can lend or borrow assets immediately, without papers or gate guards or geographical restrictions.

How AAVE works

By lending and borrowing with smart contracts, AAVE removes the need for confidence in the mediators, reduces costs, increases speed. Users deposit their encryption assets in AAVE liquidity gatherings. These complexes work like large collective funds through which borrowers can take loans. On the other hand, lenders earn the benefits that borrowers pay. The entire process is secured by Blockchain technology, which is designed to make the system transparent and difficult to manipulate.

Borrowians need a warranty position – often more than the loan value – to protect lenders from failure to pay. This “excessive overcoming” is a major safety feature aimed at helping to maintain the stability of the platform.

AAVE also has its own encoded currency called AAVE, which serves multiple purposes within the ecosystem:

• Governance: The owners of the distinguished code can vote on the proposals that decide how the protocol or changes develop, which means that users have an opinion on important decisions instead of one company or a group that controls everything.
• Safety Unit: Distinctive symbols (closed) can be as a safety net. If something happens, this group of symbols helps to cover potential losses and protect depositors’ money.
• Discounts and benefits: Using users can give users less fees or better conditions on the platform.

In late June 2025, AAVE expanded to Aptos Blockchain, which represents their first steps until post -networks compatible with Ethereum, which means that traders can now lend them, borrow them, and use Stablecoin like US Currency (USDC) and AAVE (GHO) on Aptos.

Almost at the same time, the protocol presented a major update to the risk management system. AAVE has replaced the old safety unit with a new mechanism called umbrella, which automatically uses amazing assets such as AUSDC or GHO to cover the deadly debt. The new system allows users to choose the assets they want to share, providing a more flexible way to protect the statute from losses.

From the time of the press, AAVE now lives on more than ten different networks, including Ethereum, Polygon, Avalanche, Expression, Optimism, Al Qaeda, Fantom, Gnosis, Metis, BNB Series, and Scrolling.