Glossary
Aave
The largest decentralized lending protocol on Ethereum and most EVM chains, offering over-collateralized borrows, flash loans, and a GHO stablecoin.
Aave (originally ETHLend, 2017) is the canonical DeFi money market. Users deposit assets to earn variable yield; borrowers post over-collateralized positions and pay variable interest set by utilization. Aave pioneered flash loans and the multi-collateral borrowing model that most lenders now imitate.
The protocol issues GHO, an over-collateralized stablecoin minted against Aave positions. AAVE governance holders set parameters (reserve factors, collateral additions, freeze switches) and control the Safety Module that backstops shortfalls.