Introduction:
Welcome to our comprehensive guide designed particularly for beginners on how to create informative visualizations that accurately reflect the daily, weekly, and monthly movements of AAVE tokens on the Aave protocol. In this guide, we will be focusing exclusively on the activities that occur on the Ethereum Mainnet.
From providing an understanding of how to visualize the supply and withdrawal of AAVE tokens, to demonstrating the nuances of daily staking and unstaking activities, this guide promises to deliver all the necessary tools and knowledge required. We understand the complexities and technicalities involved in such a task, and our aim is to simplify this as much as possible for the newcomers.
By the end of this tutorial, you will have a robust understanding of how to generate insightful visualizations that can potentially contribute towards enhancing your decision-making process within the Aave ecosystem. Remember, understanding the movement of tokens is a critical aspect of navigating the decentralized finance landscape. So, let's dive in and begin this exciting journey!
Methodology:
In this first part of this dashboard I am going to be looking at the ethereum.aave.ez_withdraws and ethereum.aave.ez_deposits tables, from these I will look at where the symbol is like 'AAVE' and focus on amount of Aave deposited and withdrawn overall and overtime. Next I am going to be looking the ethereum.core.ez_token_transfers table in order to see the volume of Aave staked and unstaked overall and overtime.
Definitions:
What is Aave?
Aave is a decentralized cryptocurrency platform that allows users to borrow and lend crypto. Aave uses smart contracts to automate the process, with preset rules on how funds are distributed, how collateral is handled, and how fees are assessed.
Aave specializes in overcollateralized loans, meaning that users will need to deposit crypto worth more than the amount that they wish to borrow. This protects lenders from losing money due to loan defaults and allows the Aave protocol to liquidate the collateral if it drops too much in value.
Aave also offers a native crypto token (AAVE) that can be traded on most exchanges or staked in the Aave platform to earn interest. Staking is how crypto miners earn rewards for validating transactions on a proof-of-stake blockchain like the one that underlies Aave.
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