A no-collateral loaning platform, Aave Protocol, has launched on Ethereum mainnet, supporting nothing less than 16 digital assets at launch.
The platform says it launched with diverse innovative financial tools for the ecosystem, bringing in Flash loans an unmatched feature of Aave protocol.
Flash loan allows users to borrow seamless without delay or collateral. The tool is designed for people/developers who have the requisite technical know-how to customize smart contracts to enable them borrow assets from Aave’s reserve pools. Within one transaction provided they will return the liquidity back to the pool before the end of the transaction.
If the condition is not met, the transaction is reversed and the actions are undone to make sure the safety of the fund is assured.
As well, the protocol introduced a tokenization model, the interest-bearing tokens (aTokens) are pegged 1:1 to the value of the underlying asset. Aave protocol also unveiled stable rate, a distinct interest rate model for borrowers.
The Stable rate loans act like a fixed-rate loan in the short-term, however, it can be re-balanced in the long-term.
As well, Perpetual Loans, another future, gives users the power to get liquidity from their deposits without any duration or repayment schedule.
Aave Protocol says it has 16 different assets, including 5 stablecoins. These assets are to be borrowed/deposited.
They include: BAT, DAI, ETH, KNC, LEND, LINK, MANA, MKR, REP, TUSD, USDC, USDT, WBTC, ZRX, SUSD, and SNX.
The Aave also launched Aave Oracle, and it is being powered by Chainlink, securing 16 cryptocurrency price feeds.