Aave, a decentralized finance protocol, has reached a new significant milestone, surpassing $50 billion in net deposits, placing it on par with some mid-sized banks in the U.S.
What is Aave
Aave is a DeFi platform built on the Ethereum blockchain that allows people to lend and borrow cryptocurrencies without needing banks. It operates as a global digital lending marketplace where users can earn interest on their crypto assets or take out loans by providing collateral. The name 'Aave' means 'ghost' in Finnish, symbolizing the somewhat invisible yet powerful nature of decentralized finance. The project was launched in 2017 as ETHLend and rebranded in 2018 to reflect a broader ambition.
How Aave works
Aave automates lending and borrowing using smart contracts, eliminating the need for intermediaries. Users deposit their crypto assets into liquidity pools, which borrowers can draw from. Borrowers typically need to provide more collateral than the loan amount, which helps maintain platform stability. Aave also has its own cryptocurrency, the AAVE token, which plays a key role in governance and provides users with various benefits.
Aave's Expansion to Aptos Blockchain
In June 2025, Aave expanded by launching on the Aptos blockchain, marking its first move beyond Ethereum-compatible networks. A new risk management system called Umbrella was introduced to automatically use staked assets for covering bad debt. Aave is now available on over a dozen different networks, including Ethereum, Polygon, and others.
Aave's achievement of surpassing $50 billion in deposits highlights the importance of decentralized finance in the modern financial landscape by providing access to loans and borrowing without traditional banking hurdles.
