Aave is an Ethereum-based decentralized lending and borrowing network. Aave customers may obtain loans by pledging crypto holdings as collateral. Lenders that give collateral to Aave are rewarded with aTokens, which automatically pay interest to the bearer using platform trading fees. Aave invented ‘flash loans,’ which allow for the uncollateralized lending of cash as long as the principle is returned inside the same Ethereum transaction block.