What is AAVE?

Aave is a decentralized finance (DeFi) protocol that lets people lend and borrow cryptocurrencies and real-world assets (RWAs) without having to go through a centralized intermediary. When they lend, they earn interest; when they borrow, they pay interest.

Aave was originally built atop the Ethereum network, with all the tokens on the network also using the Ethereum blockchain to process transactions; they are known as ERC20 tokens. Aave has since expanded to other chains, including Avalanche, Fantom, and Harmony.

The protocol itself uses a decentralized autonomous organization, or DAO. That means it’s operated and governed by the people who hold—and vote with—AAVE tokens.

How lending works on Aave

Traditionally, to get a loan, you'd need to go to a bank or other financial institution with lots of liquid cash. The bank will ask for collateral—in the case of a car loan, that would be the car title itself—in exchange for the loan. You then pay the principal to the bank every month, plus interest.

DeFi is different. There is no bank. Instead, smart contracts (which are computer codes that automate transactions, such as selling if a token price reaches a certain threshold) do the heavy lifting. DeFi removes the middlemen from asset-trading, futures contracts, and savings accounts.

In practice, that means that you can get a loan—in cryptocurrency—from people instead of financial institutions. However, you still have to put up collateral. In a DeFi system that tries to be fiat-free, that means other cryptocurrency tokens.

And because cryptocurrency is so volatile, many DeFi platforms demand overcollateralization. So, for a $500 crypto loan on Aave, you'd need to put up more than that amount in a different cryptocurrency. If the price plummets and the amount in collateral no longer covers the amount you've borrowed, your collateral can be liquidated, meaning the protocol takes it to cover the cost of your loan.

Aave currently has pools for 30 Ethereum-based assets, including the stablecoins Tether, DAI, USD Coin, and Gemini dollar. Other markets include Avalanche, Fantom, Harmony, and Polygon, among others.

Aave also provides pools for real-world assets, like real estate, cargo and freight invoices, and payment advances. For such pools, a partner company called Centrifuge helps brick-and-mortar businesses tokenize aspects of their operations. Once tokenized, investors can purchase (or hold as collateral) these tokens, which behave similar to bonds and earn a yield on their holdings. Thus, these assets can be used as collateral for real-world businesses to borrow cash.

References

decrypt.co

What is investigated in this dashboard?

• Daily and total staked and unstaked.
• Top 5 stakers ans unstakers (by volume).
• Daily and total supplied and withdrawn.
• Top 5 suppliers and withrawers.
• Transactions.

Parameters

• Period_From_Current_Date: could be any positive integer, it determines the last number of days the analysis is done for daily basis.

• Period_From_Current_Date_weekly: could be any positive integer, it determines the last number of days the analysis is done for weekly basis.

• Period_From_Current_Date_monthly: could be any positive integer, it determines the last number of days the analysis is done for monthly basis.

• Date_Trunc: could be 'day', 'week', 'month', and 'year'. So it present the results in the selected time frame Don't use it!, it is handled section by section.

The charts refelect a fluctuating trend in daily staking and unstaking in the last 120 days. As is seen, there are also notable peaks in the period of time under investigation. Some of the most notable peaks in the last 120 days are:

• Apr 4, 2023: staked=2.206M.
• Apr 18, 2023: unstaked=1.813M.
• May 06, 2023: unstaked=1.829M.

However, the overall staked and unstaked in the last 120 days are of close values:

• Unstaked: 18.508M.
• Staked: 19.599M.

Top 5 stakers and unstakers by AAVE volume charts show that, the largest amount of staked by a single user and that unstaked by another user in the last 120 days are also close. In fact, the largest amount of staked by a single user is 28.1k (AAVE), and the largest amount unstaked by a single user is 25k (AAVE).

Daily volume of supplied and withdrawn do not follow a pattern a show a fluctuating trend in the last 120 days. There are two dramatic peaks in suppled and withdrawn in the last 120 days:

• Feb 27, 2023: withdrawn=29.804M.
• Mar 15, 2023: supplied 17.649M.

Top 5 suppliers and withdrawers by token volume charts show that the largest amount supplied by a single user and the largest amount withdrawn by a single user are alsmot the same. In fact, the largest amount of supplied by a single user is 240k (AAVE), and the largest amount withdrawn by a single user is 239k (AAVE).

overall, the weekly and also the monthly trends help us to better understand the trands of staking, unstaking, supplying, and withdrawing trends. So, as is seen, there is a notable decline in all of these activities, although the weekly trends show some increasing staking in recent weeks, however the overall trend is declining in all of the activities.

In this dashboard we have investigated some trends on Aave. Aave as a a cryptocurrency platform that gives users and participants the ability to borrow and lend crypto without a middleman. In effect, it's a sort of lending system in the crypto space that let's users lend and borrow, and earn interest as a result.

We have investigated staked, unstaked, supplied, and withdrawn during the last 120 days and also last year on a daily, weekly, and monthly basis. From daily basis, the trends are fluctuating and hard to be interpreted or concluded, so investigating the weekly and monthly trends was necessary to conclude the dashboard.

Overall, the weekly and monthly trends reflect a declinining interest in staking, unstaking, supplying, transactions and also withdrawing activities in Aave.