"This sample document showcases our expertise and capacity to re-engineering Aave’s documentation to deliver streamlined navigation and crystal-clear explanations. It serves as a precursor to our broader objective of transforming Aave’s entire documentation into an unparalleled resource for users and developers alike.”
<aside> 💡 Original version: https://docs.aave.com/faq/
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Aave is a Decentralized Finance protocol that allows to lend, borrow and earn cryptocurrencies in a permissionless and self-custodial way. Anyone can use Aave to lend or borrow their crypto instantly, without KYC, credit score or credit payment deadlines. All you need is a crypto wallet, cryptocurrency and internet connection. Lenders deposit their crypto into a smart contract and earn interest on it and borrowers can get an overcollateralized loan which they’ll have to repay later plus interest . Our protocol has two elements that make it very interesting First, it's open source, which means you can build any third-party service or application to interact with the protocol and enhance your product. And second, the protocol has been audited and secured, so you can operate with peace of mind.
For depositors: Users deposit their cryptocurrencies into a smart contract and earn interest.
For borrowers: Users can request loans backed by their deposited cryptocurrencies, which they will need to repay later along with the corresponding interest.
For a complete breakdown of how deposits and borrowing works, please go to the “Deposits and borrows” page.
To use the Aave protocol, you simply need to follow these steps:
You are all set!
Additionally, when supplying assets, you have the option to borrow using your supplied assets as collateral. Any interest you earn by supplying funds helps offset the interest rate you accumulate when borrowing.
Your funds are allocated to an audited smart contract, from which you can withdraw if you wish, or you can also explore the option of exporting a tokenized version of your borrowed funds called “aTokens”. These tokens can be moved and traded like any other asset on Ethereum.
If this seems complex to you, don't hesitate to join our community on the Aave **Discord** server. There, you'll find answers to all your questions!