Aave is a DeFi, or decentralized finance, lending protocol that runs on the Ethereum blockchain. The protocol allows users to lend and borrow crypto directly with one another. Lenders can deposit and earn interest on a wide selection of cryptocurrencies, while borrowers can post collateral to get access to different cryptocurrencies.
AAVE is an Ethereum token that allows users to vote on decisions regarding the governance of the platform. In addition, users can receive discounts on fees in return for holding AAVE.