Banner
AAVE Records Largest Flash Loan In Its History
AAVE Records Largest Flash Loan In Its History

Will DeFi Grow Even Bigger?

As Bitcoin zigzags between $9000 to $9900 for the past few months, it has been branded as boring by some. While Ethereum is gearing up to the release of Ethereum 2.0, its price has also been relatively stable. But in this time of stability, DeFi tokens have surged and their demand is growing for various flash loans, liquidity pools, decentralized oracles, and yield-farming.  

Aave (LEND) is one of the DeFi tokens and part of the Ethereum ecosystem. They offer lending and interest protocols, with flash loans being a big part of what they offer. Earlier today, Aave has recorded the largest flash loan in its history.

 


The size of the loan nearly emptied Aave's liquidity pool, but was paid back within the same transaction. The lender possibly borrowed funds to "yield farm" on a different DeFi protocol.  

How Flash Loans Work

Flash loans are an uncollateralized loan option that allows users to borrow funds easily without collateral. The only catch is that the loan must be returned in 1 transaction block, if it is not returned the transaction is cancelled.

Aave's Rise

Like many different DeFi tokens, demand for Aave has grown rapidly during the past few weeks. Its price has increased by 23% in the past 24-hours and is trading at $0.173615. It has had significant growth against Ethereum and Bitcoin as well.

It seems that Aave will continue to rise as DeFi becomes even more mainstream among cryptocurrency fans.

 

Back to Home

Written by Jonathan Ganor

Writer & cryptocurrency aficionado

Be the first to response!

Leave a Reply

Your email address will not be published. Required fields are marked*