Key focus
- Aave protocol overview
- Team, Investors, and Community
- Financial metrics
- Tokenomics
- Final thought (Conclusion)
AAVE PROTOCOL OVERVIEW
Aave is a decentralized non-custodial liquidity protocol where users can participate as depositors or borrowers. Depositors provide liquidity to the market to earn a passive income, while borrowers can borrow overcollarized (perpetually or undercollaterized core-block liquidity fashion.
The above protocol offers 4 services
- Supply: allows users to supply assets into the protocol and watch their assets grow as a liquidity provider
- Stake: Deposit your Aave into the protocol and earn rewards for securing the protocol
- Borrow : Borrow against your collateral from multiple networks and assets.
- Vote : participate in governance and vote on a new proposal, new asset, and protocol upgrade
Market
Aave support and provide a market for polygon, Avalanche, Arbitrum, Optimism, Aave AR, AMM & centrifuge RWA
Smart contract audit(auditors)
V3.0.1
Sigmaprime - smart contract
Certora - formal verification
Peckshield - smart contract
V3 audits
ABDK - smart contract
Sigma prime - smart contract
Trail of bits- smart contract
TEAM
- @stainikulechav - founder
@JordanlzG - co-founder
Others.
@coderdannn- building
@gldnXroas -founders at aavegitchi
@The3D - aave community builder
@Nicolo - Director of Strategy (twitter handle)
Investors
Paraficapital, framework ventures, 3AC
Community
Twitter: 529k followers and over 2k active members
Discord: 49, 129 members and over 4, 155 active members
Telegram: 16,377 members and over 1k active members
FINANCIAL METRICS
Circulating market cap - $1.2b
Fully diluted market cap - $1.25b
Total value locked - $5.06b
Active loans - $2.26b
Fees (30 days) - $9.11m
Revenue (30 days) - 1.13m
Treasury - $117.36
The revenue is split into two parts
- Lenders: the lenders take the supply side of the fees which is a combination of interest + liquidation fees.
(Image)
- Aave holders: the holders of the aave token get a share of the interest + liquidation that goes to the protocol
- Asset/liquidity pool that generates the most fees for the protocol is as follows; USDC stablecoin takes the lead, followed by WETH, USDT, DAI, CRV & others
While the chain that generates the most fees for the protocol is ETH
Aave protocol Q1 financial statement
- Income statement
i. Fees - $18.51m
ii. Supply side fees $16.4m
iii. Revenue - $2.37m
iv. Treasury - $118.50m
v.Aave token holders - 153.45k
TOKENOMICS
The goal of the tokenomics through the incentives and policies is to create a shelling point where the protocol growth, sustainability, and safety take priority over individual stakeholders
The above token holders define and govern three aspects of the protocol
i. Insurance pool
ii. Money markets
iii. Ecosystem reserve
(Image)
-The total supply or the aave token will be 16m tokens
-13m above tokens will be allocated to the aave ecosystem reserve
- Circulating supply 14m
FINAL THOUGHT
The above protocol offers services and products to the Defi ecosystem to pave the way for seamless money market efficiency.
The protocol has a solid team and an optimistic founder.
Although most of the tokens are reserved, with a minimal total supply which for me has a positive and a negative side
But in the long run, we expect Aave to do well in the future, considering all related Defi risks.
We are still in the nascent stage of Defi
So please, play smart!!
This will be all for now!
