Formerly called ETHLend, AAVE, founded by Stani Kulechov, is a decentralized cryptocurrency lending and borrowing platform built on the Ethereum blockchain. As an automated market maker, the AAVE protocol is self-balanced such that the protocol's activities are programmatically controlled and regulated, thus eliminating the need for centralized intermediaries.
The AAVE protocol's main participants are the depositors and the borrowers. Depositors provide market liquidity on over 25 supported ERC-20 tokens and earn interest on them. On the other hand, borrowers can instantly take a loan from the protocol after providing sufficient collateral in a supported cryptocurrency of their choice.
AAVE, the protocol's native token, is used in governance activities and can be staked to earn incentives.