Aave

Aave

Non-custodial DeFi lending, borrowing, flash loans

Overview

Aave is a decentralized finance protocol that lets people lend and borrow a wide range of cryptocurrencies without giving up custody of their funds. Depositors lock their crypto into liquidity pools managed by smart contracts on Ethereum and earn interest. Borrowers take loans against collateral that is overcollateralized, meaning the collateral value exceeds the loan value to reduce risk of default. The protocol also offers flash loans, which are uncollateralized and must be borrowed and repaid within the same blockchain transaction. Governance is handled by AAVE token holders who vote on proposals and updates. Compared with many competitors, Aave does not control user funds, supports multiple assets, and includes features like flash loans and on-chain governance, making it a non-custodial, community-driven liquidity protocol. The overall goal is to provide a transparent, programmable, permissionless way to manage crypto liquidity and borrowing across a wide set of assets.

About Aave

Simplify's Rating
Why Aave is rated
B-
Rated B on Competitive Edge
Rated B on Growth Potential
Rated C on Differentiation

Industries

Fintech

Crypto & Web3

Financial Services

Company Size

11-50

Company Stage

Early VC

Total Funding

$15M

Headquarters

London, United Kingdom

Founded

2017

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Simplify's Take

What believers are saying

  • Aave launched V4 on Avalanche on July 15, 2026, expanding beyond Ethereum.
  • Stable Vaults launched July 9, 2026, opening distribution through wallets, exchanges, and payment apps.
  • Aave's July 2026 USDC borrower incentives and developer activity strengthen liquidity and builder momentum.

What critics are saying

  • Aave is shutting six chains and 50 reserves, signaling weak demand and costly multichain sprawl.
  • The April 2026 KelpDAO exploit exposed bridge contagion; another cross-chain failure can trigger bad debt.
  • If governance cannot sustain V4 growth beyond incentives, Aave's multichain strategy becomes an expensive retreat.

What makes Aave unique

  • Aave's 2026 risk framework standardizes onboarding, quarterly reviews, and deprecations across V3, V4, Horizon.
  • Aave V4's hub-and-spoke design isolates correlated and forex risk across Avalanche and Ethereum.
  • Stable Vaults let fintechs embed predictable stablecoin yield without managing DeFi infrastructure directly.

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Funding

Total Funding

$15M

Above

Industry Average

Funded Over

1 Rounds

Early VC funding comparison data is currently unavailable. We're working to provide this information soon!
Early VC Funding Comparison
Coming Soon

Benefits

Competitive salary + token + equity plan

Health and dental insurance

25 days of PTO

Remote friendly

Company News

Chain Tech Daily
Jul 31st, 2026
Uniswap launches Earn with Morpho lending vaults.

Uniswap launches Earn with Morpho lending vaults. Uniswap has launched Earn, a self-custodial lending product that allows users to deposit USDC, USDT, and ETH into Morpho vaults without leaving its app. * Earn is live on the Ethereum mainnet through the Uniswap Web App and Wallet. * Deposits enter Morpho lending vaults curated by Gauntlet, where borrower interest generates user yield. * Uniswap charges no additional Earn fee, although users must pay Ethereum network costs. * UNI traded near $4.30, down about 2.8% over 24 hours but up 12% for the week. Uniswap Earn supports USDC, USDT and ETH. Earn is available through the Uniswap Web App and Wallet, extending the platform beyond token swaps and liquidity provision into onchain lending. Users can select a supported asset, choose an amount and authorize the deposit with one signature. Deposits then earn interest paid by borrowers across lending markets selected by the underlying vault. USDC, USDT and ETH are supported at launch, with all three vaults operating on Ethereum mainnet. Users can withdraw at any time because the product has no mandatory lockup or cooldown period, according to Uniswap's launch announcement. Uniswap does not charge a separate fee for using Earn. However, depositors remain responsible for standard Ethereum transaction costs, which can make smaller positions less economical when network fees rise. Deposits appear alongside users' other assets in the Uniswap portfolio interface. The dashboard displays the amount deposited, the current yield rate and total earnings, while recording deposits and withdrawals in the account's activity history. Morpho and Gauntlet manage the lending infrastructure. Morpho supplies the permissionless lending infrastructure behind Earn, while Gauntlet curates the vaults and determines how deposits are distributed across eligible markets. Vault curation can reduce the need for depositors to compare individual lending pools, collateral types, and utilization rates. Gauntlet can set exposure limits and rebalance capital as market conditions change, but depositors still carry the risks associated with those allocation decisions. Morpho currently reports about $11.79 billion in deposits and $4.15 billion in active loans across its network. The protocol previously said deposits increased from $5 billion at the beginning of 2025 to $13 billion by the end of that year's third quarter. Active loans rose from $1.9 billion to $4.5 billion over the same period. Annualized interest paid to Morpho lenders reached $227 million in 2025, representing a 400% increase from 2024, according to Morpho's annual review. Earn broadens Uniswap beyond token swaps. Earn gives Uniswap another way to retain users between trades. Instead of transferring unused stablecoins or ETH to a separate lending protocol, users can now access lending vaults through the same interface used for swaps and portfolio tracking. The integration places Uniswap in closer competition with established lending platforms such as Aave and Compound. Its main distribution advantage is an existing base of traders who can move from swapping to lending without navigating to another application. For US users, Earn is an onchain lending service rather than a bank savings account. Deposits do not carry FDIC insurance, and self-custody does not remove smart contract, collateral, liquidity, or stablecoin risks. Vault yields are also variable. Rates can fall when lender deposits grow faster than borrowing demand, meaning the displayed annual percentage yield is not guaranteed for the duration of a deposit. UNI price shows limited reaction to Earn launch. UNI traded near $4.30 at the time of writing, declining approximately 2.8% over the previous 24 hours. The token remained up about 12% over seven days. Its market capitalization stood near $2.68 billion, while 24-hour trading volume reached roughly $376 million. The latest move does not establish a direct link between the Earn announcement and UNI's price performance. Adoption will depend on the yields offered by the Gauntlet-curated vaults, Ethereum transaction costs, and users' willingness to accept lending-market risks. Uniswap has not announced that Earn revenue will flow directly to UNI holders, making deposits and user retention the main metrics to watch initially.

LCX AG
Jul 31st, 2026
Aave weighs closing 6 V3 blockchain markets, offboarding 50 low-use reserves.

Aave weighs closing 6 V3 blockchain markets, offboarding 50 low-use reserves. Cointelegraph.com News July 30, 2026 Latest NewsPublishedJul 31, 2026 DeFi risk management service LlamaRisk recommended that Aave wind down every reserve on Sonic, Scroll, zkSync, Metis, Soneium and Aptos, but action against most of those instances was already taken. An Aave governance proposal would wind down the lending protocol's V3 markets on six blockchains and retire dozens of low-use token listings, a cleanup covering $98.1 million in supplied assets and $15.6 million in debt. Risk service provider LlamaRisk, working with other Aave service providers, recommended offboarding 50 low-use reserves and 21 matured Pendle principal token listings across 11 deployments. It also proposed retiring all 25 reserves on Sonic, Scroll, zkSync, Metis, Soneium and Aptos. The balances were measured on July 28. An ARFC is a detailed proposal and precursor to an Aave Improvement Proposal; it is not, by itself, proof of a completed final onchain vote or execution. Aptos exit follows recent launch. The proposed Aptos exit comes just 11 months after Aave launched its V3 market there, with available liquidity down 94% over six months and quarterly revenue below $1,000, according to LlamaRisk. Every reserve on Scroll, zkSync, Metis and Soneium was already frozen, whereas Sonic and Aptos remained active and are recommended for freezing. The temp check on Aave's multichain strategy concluded on Dec. 5, 2025, with 923,400 votes in favor and under 1% against increasing the reserve factor on underperforming instances, shutting down the instances on zkSync, Metis and Soneium, and establishing a $2 million annual revenue floor for new instance deployment. Scroll was then added to the affected protocols through an accelerated process in April, as LlamaRisk filed a direct-to-AIP proposal to freeze every Scroll reserve and raise selected reserve factors, describing the measure as completing Scroll's deprecation after a rapid deterioration in network liquidity and Aave market activity. Aave also published an updated risk framework on June 9, covering asset, bridge, monitoring and chain risk and criteria for winding down reserves or deployments, and this month's announcement indicated de facto adoption of those rules by the protocol. Aave founder Stani Kulechov said in a Thursday post that this will also "reduce Aave's economic and technical risk surface as part of the new Aave Risk Framework and Technical Asset Listing Framework." Still, this is not a reversal of Aave's multichain expansion strategy, rather a strategic refocusing on select protocols. "Aave will continue applying continuous risk assessment for all assets across all deployments," Kulechov said. The comments also follow Aave launching on Avalanche earlier this month. Magazine: The real reason DeFi projects that survived 2022 crash are shutting down now Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph's Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.

Cointelegraph
Jul 31st, 2026
Aave weighs closing 6 V3 blockchain markets, offboarding 50 low-use reserves.

Aave weighs closing 6 V3 blockchain markets, offboarding 50 low-use reserves. DeFi risk management service LlamaRisk recommended that Aave wind down every reserve on Sonic, Scroll, zkSync, Metis, Soneium and Aptos, but action against most of those instances was already taken. An Aave governance proposal would wind down the lending protocol's V3 markets on six blockchains and retire dozens of low-use token listings, a cleanup covering $98.1 million in supplied assets and $15.6 million in debt. Risk service provider LlamaRisk, working with other Aave service providers, recommended offboarding 50 low-use reserves and 21 matured Pendle principal token listings across 11 deployments. It also proposed retiring all 25 reserves on Sonic, Scroll, zkSync, Metis, Soneium and Aptos. The balances were measured on July 28. An ARFC is a detailed proposal and precursor to an Aave Improvement Proposal; it is not, by itself, proof of a completed final onchain vote or execution. Aptos exit follows recent launch. The proposed Aptos exit comes just 11 months after Aave launched its V3 market there, with available liquidity down 94% over six months and quarterly revenue below $1,000, according to LlamaRisk. Every reserve on Scroll, zkSync, Metis and Soneium was already frozen, whereas Sonic and Aptos remained active and are recommended for freezing. The temp check on Aave's multichain strategy concluded on Dec. 5, 2025, with 923,400 votes in favor and under 1% against increasing the reserve factor on underperforming instances, shutting down the instances on zkSync, Metis and Soneium, and establishing a $2 million annual revenue floor for new instance deployment. Scroll was then added to the affected protocols through an accelerated process in April, as LlamaRisk filed a direct-to-AIP proposal to freeze every Scroll reserve and raise selected reserve factors, describing the measure as completing Scroll's deprecation after a rapid deterioration in network liquidity and Aave market activity. Aave also published an updated risk framework on June 9, covering asset, bridge, monitoring and chain risk and criteria for winding down reserves or deployments, and this month's announcement indicated de facto adoption of those rules by the protocol. Aave founder Stani Kulechov said in a Thursday post that this will also "reduce Aave's economic and technical risk surface as part of the new Aave Risk Framework and Technical Asset Listing Framework." Still, this is not a reversal of Aave's multichain expansion strategy, rather a strategic refocusing on select protocols. "Aave will continue applying continuous risk assessment for all assets across all deployments," Kulechov said. The comments also follow Aave launching on Avalanche earlier this month. Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph's Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.

CoinTribune
Jul 30th, 2026
DeFi: Aave plans the largest wave of reserve removals in its history.

DeFi: Aave plans the largest wave of reserve removals in its history. Summarize this article with: Aave wants to remove several reserves that have become too little used. This operation would involve 98.1 million dollars of deposited assets and 15.6 million dollars of debt. For the crypto protocol, it is not about responding to an immediate emergency. The goal is rather to reduce the risks and the costs related to markets that have become unprofitable. In brief. * Aave wants to remove reserves representing 98.1 million dollars. * Six blockchain deployments could be completely closed. * The proposal aims to reduce risks and maintenance costs. Aave wants to remove little-used crypto reserves. The proposal plans the removal of 50 reserves showing limited adoption. It also targets 21 Pendle Principal Tokens that have matured. This reorganization comes as Aave prepares its V4, a version designed to better separate liquidity and risk management. The affected reserves are spread across 11 Aave V3 deployments. They represent approximately 85.3 million dollars of supplied assets and 11.5 million dollars of debt. These amounts remain modest at the scale of the crypto protocol. However, their maintenance requires several technical services. Each market notably needs a price oracle, a liquidation mechanism, and regular monitoring. When activity becomes too low, the revenues generated no longer always offset these costs. Aave therefore prefers to focus its resources on the most active reserves. The plan goes further than a simple token removal. Aave also plans to completely close its deployments on Sonic, Scroll, zkSync, Metis, Soneium, and Aptos. These six markets include 25 additional reserves. Their removal would affect about 12.8 million dollars of assets deposited and 4.1 million dollars of debt. The crypto protocol considers that the revenues from these deployments no longer justify the costs required for their maintenance. This decision illustrates the limits of too rapid multichain expansion. Deploying a protocol on multiple networks can attract new users. But each additional blockchain adds technical risks, liquidity needs, and operational expenses. Aave therefore is not giving up on its multichain model. The crypto protocol is rather looking to close markets that have become peripheral. This logic also applies in a context of tensions around risk management. Progressive measures to encourage users to withdraw. Aave does not plan to immediately remove the concerned reserves. The process would be gradual. Lenders and borrowers would thus have the necessary time to close their positions. The protocol would start by blocking new deposits and new loans. The supply and borrowing limits would then be reduced to a single unit. This measure would practically prevent any new activity without abruptly disturbing existing positions. For assets that can still be borrowed, Aave would also increase the reserve factor. A larger share of interest paid by borrowers would then go to the protocol. Maintaining these positions would gradually become less attractive. The six deployments intended for complete closure could undergo stricter measures. The reserve factor would rise to 99%, while base interest rates would increase. The goal is clear: encourage users to naturally close their positions. This reorganization stems from the new risk framework proposed by Aave in June 2026. It was presented after the KelpDAO bridge attack, which exposed the protocol to significant bad debt risk. During this incident, stolen rsETH was deposited on Aave as collateral. The attacker then borrowed other assets against this collateral. Even though Aave was not directly responsible for the breach, the episode showed that an external asset could transmit its risk to the protocol. The platform then underwent significant withdrawals while continuing to operate. Cointribune analyzed this liquidity crisis and the measures planned to better isolate contagion risks. The proposed removal therefore does not target only assets considered dangerous. It also concerns tokens reproducing native assets, matured Pendle products, and markets whose activity has become insufficient. Maximize your Cointribune experience with its "Read to Earn" program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits. Join the program Enseignante et ingénieure IT, Lydie découvre le Bitcoin en 2022 et plonge dans l'univers des cryptomonnaies. Elle vulgarise des sujets complexes, décrypte les enjeux du Web3 et défend une vision d'un futur numérique ouvert, inclusif et décentralisé. DISCLAIMER The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.

Blockchain Reporter
Jul 27th, 2026
Yearn, Aave, and Gearbox climb Santiment's yield farming development rankings as DeFi building shifts.

Yearn, Aave, and Gearbox climb Santiment's yield farming development rankings as DeFi building shifts. July 27, 2026 9:00 PM Table of contents Silent builder activity often tells a different story than token prices. In a week where DeFi tokens drifted sideways, the update from Santiment on yield farming development rankings placed Yearn Finance, Aave, and Gearbox among the top movers - while a handful of established names slipped. The data, pulled from GitHub activity across project repositories, offers a window into which teams are shipping code, not just marketing. Yearn Finance ($YFI) claimed the top spot, marked with a neutral directional indicator but holding steady from the previous month. Aave's Ethereum deployment rose to third, climbing two positions. Gearbox Protocol entered the top five with a sharp upward move, suggesting active work on its leveraged yield strategy framework. Yield Basis ($YB) also appeared as a new entrant, reinforcing that fresh liquidity layer projects are gaining traction in the developer community. Which projects are losing momentum. The other side of the table shows Katana ($KAT) sliding from second to fourth, while Beefy Finance ($BIFI) fell outside the top three. Alchemix ($ALCX) and both SushiSwap deployments - on Ethereum and Arbitrum - occupied the lower ranks, each declining since the last measurement. Unitas Labs ($UP) also dropped, continuing a quiet period for the protocol. These shifts don't necessarily mean abandonment, but in a market where yield farmers migrate quickly between vaults and aggregators, stagnant development can erode mindshare. This ranking arrives at a time when yield opportunities across DeFi are compressing. With stablecoin lending rates moderating and ETH staking yields flat, the protocols that innovate on risk-adjusted returns or capital efficiency are more likely to capture liquidity. The development rankings reflect where that innovation might emerge next. What on-chain development data can and cannot say. Santiment's methodology filters out shallow commits and focuses on core repository contributions. That makes the signal stronger than raw commit counts, but it's still a lagging glimpse into engineering effort. A spike in activity could reflect bug fixes, security audits, or a testing phase ahead of a mainnet launch. It doesn't necessarily translate into immediate user growth or token performance. For traders watching these rankings, the data works best as a leading filter - highlighting projects where the technical foundation is solidifying, even if price hasn't followed yet. The presence of Aave and Yearn at the top also reinforces that multi-cycle DeFi protocols continue to reinvest in their codebases. Some newer entrants, like Gearbox and Yield Basis, could signal where yield farmers will find fresh mechanics in the coming months. Meanwhile, slips from SushiSwap and Alchemix raise questions about how these protocols plan to retain developer talent and liquidity when competition is rising. As broader developer activity trends across crypto show, sustained building is one of the few signals that cuts through short-term noise.

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