Borrowing in AAVE

AAVE borrowing refers to the process of borrowing cryptocurrency assets from the AAVE protocol. When a user borrows from AAVE, they can use their own cryptocurrency as collateral to take out a loan in a different cryptocurrency. For example, a user could deposit Ethereum as collateral and then borrow stablecoins like USDC or DAI. The user can then use the borrowed funds for trading or other purposes. AAVE uses smart contracts to automate the lending and borrowing process, eliminating the need for traditional financial intermediaries like banks. The interest rates on AAVE are determined by supply and demand for each cryptocurrency asset, and they can change frequently based on market conditions. Borrowers on AAVE need to pay interest on the amount they borrow and must maintain a certain collateralization ratio, which means they need to deposit more collateral than the amount they borrow. This helps to protect lenders from potential losses if the value of the collateral drops. If the value of the collateral falls below a certain threshold, the collateral may be liquidated to repay the loan.

SNX, UNI & MKR Borrowing Activity on Aave v2