DeFi Protocol Analysis of Aave

Individual Defi Protocol Analysis
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Part One: Basic Descriptions
Aave is a decentralized and non-person entity lending market established on Ethereum. The company's primary objective is to offer a globally transparent, frictionless, and accessible lending protocol. Aave's protocol allows decentralized borrowing and lending of an unlimited range of assets through a distinct interface. In other words, it matches the borrowers and lenders in the market. The protocol's design allows its users to become liquidity lenders and earn some interest. Similarly, one can borrow through the platform through collateralized assets, which cannot borrow more than their deposits. The Aave protocol is power-driven by a native token known as LEND, a token employed in remitting fees associated with borrowing and lending on the platform. Furthermore, the token is applicable in rewarding the subscribers who offer liquidity on the Aave protocol. On the other hand, Aave has a team of various individuals with various skills. Stand Kulechov (CEO, also the Co-founder), Jordan Lazaro Gustave (COO and Co-Founder), and Stefan George (CTO. Other team members include advisors, namely Vitalik Buterin, a co-founder of Ethereum, and Emin Gun Sirer, a co-director of Cornell University's Initiative for Cryptocurrencies and Smart Contracts. https://github.com/aave/aave-protocol.git
Part 2
Aave is using various technologies to provide services to users to solve problems that consumers have been experiencing in traditional banking. The company operates in the lending and borrowing sector; anyone worldwide can freely subtract or borrow money and add or lend from a pool as they give or get interested in exchange (Aeve, 2020). Furthermore, regardless of background, gender, race, and employment status, anyone can benefit from the program, as there is no need to evaluate one's credit score.
Thus, the company aims to solve the problem of high interest and the inability to access loan credits. Aave employs a protocol where one does not have to worry about collaterals but can borrow amounts not exceeding their asset value. Furthermore, individuals can collateralize by 100% or beyond the amount they would like to borrow, thus, eliminating the problem of going through credit checks. In addition, borrowers have less worry about losing their cryptocurrency if there is a fall in prices.
The company also provides a service feature known as lending pools. The technique allows users to earn interest on their money or borrow money against them from the platform. Multiple lenders contribute towards the digital currency pool, thereby reducing the risk for those who want to earn interest by letting others loan them (Aeve, 2020). On the other hand, the company aims to alleviate challenges associated with centralized exchanges through a decentralized system where one can access loans without considering security and trust issues when using the platform. Furthermore, the platform can allow the borrower to change between variable and fixed interests. The latter assures one of security or certainty regarding the cost during a volatile time in the digital currency markets. On the contrary, variable interests also help bo...