Coin Metrics State of the Network

Analyst Spotlight: Aave Overview

Aave, a leading DeFi lending protocol, now manages over $50 billion in deposits and $21 billion in borrows, attracting both retail and institutional users. The platform employs asset‑level risk controls, including conservative collateral ratios and capped interest curves, to mitigate volatility‑driven liquidations. Revenue from lending markets and the native GHO stablecoin funds DAO development, security incentives, and periodic AAVE token buybacks. Governance is shared between AAVE token holders, the DAO, and Aave Labs, prompting ongoing debate over the protocol’s decentralization.