Aave (AAVE)
AAVE is the token linked to the governance and associated ecosystem mechanisms of the Aave protocol.
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Chart: TradingView Lightweight Charts™ · Data: CoinMarketCap
Aave value in USD
Conversions using the latest available price. Excludes fees and the bid-ask spread.
| AAVE amount | Value |
|---|---|
| 0.001 AAVE | $0.1256 |
| 0.01 AAVE | $1.26 |
| 0.1 AAVE | $12.56 |
| 1 AAVE | $125.61 |
| 10 AAVE | $1,256.14 |
| Budget | Estimated amount of AAVE |
|---|---|
| $100.00 | 0.79609096 AAVE |
| $500.00 | 3.98045480 AAVE |
| $1,000.00 | 7.96090960 AAVE |
| $5,000.00 | 39.80454799 AAVE |
| $10,000.00 | 79.60909598 AAVE |
On this page
AAVE is the governance token of the Aave protocol. Aave, on the other hand, is a DeFi protocol where users can provide crypto assets and borrow against collateral. Buying AAVE tokens is not the same as depositing USDC into Aave or borrowing from the protocol. These three use cases create different balances, rights, and risks.
What does the Aave protocol do?
Asset-providing users deposit tokens into the supported market. Those who wish to borrow provide suitable collateral and borrow according to market rules. Interest rates can change based on utilization and liquidity conditions. The accepted assets, limits, and collateral thresholds may differ across different networks and versions of the same protocol.
For example, the claim of a user providing USDC is represented in some versions by an aToken such as aUSDC. This record is not the AAVE governance token. When the market price of AAVE changes, your USDC claim does not automatically change at the same rate. Conversely, USDC’s own risk and the liquidity conditions in the protocol can affect the usage of the claim.
The governance function of the AAVE token
AAVE holders can participate in protocol decisions through supported voting and delegation methods. Issues such as adding new assets, risk parameters, and treasury usage may go through the governance process. Preliminary discussion, community polling, and decisions implemented on-chain are different stages. A forum message alone is not a protocol rule in effect.
The governance token is not a share in the Aave Labs company or an automatic right to a share of all debt interest. Decisions regarding revenue usage and token economics may depend on separate proposals and implementations. To understand the effect of a news item on a token holder, one must see which right or flow is actually changing. Growth in total debt volume alone does not answer this question.
Security modules and Umbrella
Aave’s security mechanisms have evolved over time. The old Safety Module structure and Umbrella are not the same product. Umbrella involves the staking of supported assets to contribute to covering deficits in specific assets and networks. The participant may take on the risk of slashing in exchange for additional rewards. Simply holding AAVE does not automatically include you in this program.
On a staking screen, it is necessary to check which token is being deposited, which deficit it is being used against, and the withdrawal period. Old stkAAVE descriptions do not cover all current options. Network- and asset-specific pools may carry different risks. The fact that no losses have occurred in the past is no guarantee that there will be no slashing in the future; contract and governance conditions should be read together.
Liquidation risk for the borrower
If the value of the collateral in Aave drops or the debt grows, the health factor may decline. When the determined limit is exceeded, a portion of the collateral may be liquidated. The act of borrowing should not be confused with tracking the price of the AAVE token; the risk of your debt position depends on which collateral and debt assets it contains.
Hypothetically, if you borrowed USDC with ETH collateral, a decrease in ETH could disrupt the ratio. An increase in the price of AAVE does not inherently protect this position. Reducing the debt or adding collateral requires separate on-chain transactions. Operational conditions such as network congestion and sufficient fee balance can affect timely intervention. The upper debt limit in the protocol interface is not a recommendation for safe borrowing.
AAVE transfer and the correct token
Verify AAVE with the official contract address and select the network supported by the receiving platform. Similar names such as AAVE, aAAVE, and stkAAVE may represent different positions. Sending one to the deposit address of another may not be supported by the service. Instead of just seeing the name of the token, it is necessary to check the full definition of the product to be transacted.
The chart on this page shows the market price of the AAVE governance token. It is not the protocol’s total deposited assets, debts, or provider interest rate. While market cap and volume help with price evaluation, collateral thresholds, liquidity, and contract terms are important for protocol usage. You can use the current Aave news and the DeFi lending guide according to these two different needs.
