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CryptoBuy AAVE



About AAVE

Aave (AAVE) is a decentralized financial protocol running on the Ethereum blockchain. Founded in 2017 by Finnish entrepreneur Stani Kulechov, the platform comprises a series of smart contracts that facilitate, sans middleman, the lending and borrowing of more than a dozen cryptocurrencies.

Interest-yielding digital assets deposited on the platform are authenticated and kept safe autonomously via a distributed network of computers (as opposed to one singular company).

Assets go into their own large, Aave-software-enabled liquidity pools tapped by borrowers. Aave’s system of smart contracts sets rates, whether fixed or variable. Only borrowing up to the value of posted collateral, users get special tokens, dubbed "aTokens," which are pegged to the value of that collateral and encoded, allowing lenders to receive interest. For instance, a user who deposited DAI would receive an "aDAI" token in exchange.

Interest on a Token accrues and compounds almost continuously with each new block on the Ethereum blockchain. Depositors can redeem the tokens at any time, receiving both their original deposit plus any interest. As of January 2021, there were upwards of $3.75 billion in deposits earning interest on the platform. That put Aave the network 2nd in terms of global total value locked (TVL).

AAVE is the platform’s native crypto; it’s a governance token that gives holders a voting interest in future decisions. Investors are incentivized to hold the token by way of reduced fees for using the platform. Holders of AAVE can also stake their funds into the protocol’s security module used to cover deposits in the event of a liquidity shortfall.

Currently, some 25% of the total AAVE in circulation is staked to the security module, with depositors receiving a 6.1% annual percentage rate for doing so.

Key to the platform’s appeal: flash loans. These are extremely short-term, uncollateralized loans issued and settled almost instantly. Flash loans require repayment before the block on which the transaction appears is authenticated. Such loans commonly are utilized by sophisticated traders or developers in need of short-term liquidity solutions.

What is the price of AAVE?

Trading at around $250 as of late January 2021, AAVE shot up more than 200% just in that first month of the year; it has risen more than 900% from its all-time low of $25 reached in November of 2020. With a market capitalization exceeding $3 billion, AAVE ranks 16th among digital assets as measured by market cap.

Recent spikes in price have seen the token’s daily trading volume increase 400% in the past month to more than $1 billion worth, making AAVE one of the more heavily traded coins.

AAVE’s January price surge owes to massive volume increases (which can be partially attributed to investors acquiring large positions in AAVE for staking purposes); explosive flash loan growth also has fuelled the rally.

Currently, there are 12.3 million AAVE in circulation. The platform uses 80% of the funds it generates to burn tokens, reducing supply over time, likely leading to, some analysts have said, an increase in the price of AAVE in the coming years.

How to buy AAVE

With Uphold, you can set up an account, verify your identity and buy crypto with ease.

Here is how:

1. Go to Uphold.com and click ‘Sign up’

2. Enter your email address, phone number and your personal details

3. Tell us how you plan to use Uphold and provide some basic financial information (e.g., employment status and source of funds)

4. Verify your identity by providing an ID document and taking a ‘selfie’

… and you’re off to the races!

Just start trading.

Open an Uphold account

You should be aware that the risk of loss in trading or holding cryptoassets can be very high. As with any asset, the value of cryptoassets can go up or down and there can be a substantial risk that you lose all your money buying, selling, holding or investing in cryptoassets. Our cryptoasset services are not within the scope of the UK Financial Ombudsman Service and your cryptoassets are not subject to protection under the UK Financial Services Compensation Scheme. You should carefully consider whether trading or holding cryptoassets is suitable for you in light of your financial condition.

Uphold Europe Limited (FRN: 900577) is registered under the Financial Conduct Authority’s Temporary Registration Regime for cryptoasset firms and complies with the Money Laundering, Terrorist Financing and Transfer for Funds (Information on the Payer) Regulations 2017 as amended. The purchase, sale and custody of cryptoassets is regulated by the FCA for anti-money laundering purposes but this does not indicate any approval by the FCA of Uphold’s cryptoasset activities. Uphold Europe Limited is also an EMD agent of Optimus Cards UK Limited which is authorised and regulated by the Financial Conduct Authority to issue e-money (FRN: 902034) pursuant to the Electronic Money Regulations 2011. 

The e-money services are regulated by the Financial Conduct Authority. E-money is not a deposit or investment account which means that your e-money will not be protected by the Financial Services Compensation Scheme. User funds will be held in a designated safekeeping account with a regulated financial institution. E-money will not earn any interest. Additional Risk Warning in Uphold’s Terms & Conditions.

This content is correct as of September 2021

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