Exploring Leading DeFi Protocols: Aave, Maker, and Compound
Exploring Leading DeFi Protocols: Aave, Maker, and Compound! Decentralized Finance (DeFi) has revolutionized the financial landscape by offering open, transparent, and permissionless financial services. Among the myriad of DeFi protocols, Aave, Maker, and Compound stand out as pioneers, each contributing uniquely to the ecosystem. This article delves into the core functionalities, innovations, and impact of these leading protocols. Aave: The DeFi Lending Powerhouse Aave , launched in 2020 by Stani Kulechov, is a decentralized lending and borrowing platform that allows users to lend their assets to earn interest or borrow against their crypto holdings. Aave’s standout feature is its support for “flash loans,” which are uncollateralized loans that must be borrowed and repaid within a single Ethereum transaction. This innovation has opened up new possibilities in arbitrage, collateral swapping, and refinancing. The governance token AAVE in the Aave protocol allows holders...