What is Aave? The largest DeFi lending market, with $28 billion in deposits

The information provided in this article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry a high degree of risk. Always conduct your own research.Aave lends crypto assets without a bank: depositors earn interest, and borrowers post more collateral than they borrow. This profile explains the technology, the AAVE token, the risks and what applies to investors in Germany.Aave lends money without a bank counter: loans run through smart contracts.Add as a preferred source on GoogleFollow on Google NewsAave is a decentralised lending protocol: you lend cryptocurrencies for interest or borrow crypto assets against collateral you post, without a bank in between. Instead of a loan officer, smart contracts decide: programs on the blockchain that enforce the rules for interest, collateral and liquidations automatically. The associated token is also called AAVE and is used mainly for governance of the protocol. Measured by deposits, Aave is the largest lending market in DeFi. According to the data service DefiLlama, around $16.2 billion sat unused in the pools in early November 2026, and a further $11.8 billion was lent out to borrow...