AAVE is a decentralized financial protocol that allows people to lend or borrow cryptocurrency.
Depositors provide liquidity to the market and can earn interest income by depositing digital assets. Borrowers can use their cryptocurrency as collateral, thereby obtaining a quick loan.
Users can lend or borrow in around 20 cryptocurrencies, giving them a wider choice. One of AAVE's outstanding products is the so-called quick loan, which has been apostrophized as the number one loan option in the DeFi space.
Another interesting feature is that, through AAVE, borrowers can choose between fixed and variable interest rates. While fixed rates offer some security during volatile periods, variable rates can come in handy if the borrower believes prices will drop in the near future.