Glossary
AAVE
The Aave protocol's governance token — also stakeable into the Safety Module that backstops shortfall events. Renamed from LEND in October 2020 at a 100:1 ratio.
AAVE replaced the original LEND token in October 2020 via a 100:1 swap, coinciding with the launch of Aave Protocol V2. The token governs protocol parameters (reserve factors, listed assets, collateral types) via the Aavegotchi-style proposal/vote/timelock flow.
Staked AAVE (stkAAVE) sits in the Safety Module, a backstop pool that can be slashed up to 30% to cover protocol shortfalls in exchange for staking yield. The Safety Module is one of the earliest production examples of a slashable security buffer for DeFi.