While our team has covered flash loans before, we haven’t discussed Aave in detail yet. London based Aave is a non-custodial protocol that lets users either earn interest on deposits or borrow digital assets. It just launched in January but has gained quite a bit of traction since then (as you can see below).
Source: DeFi Pulse, CMC
Aave has differentiated itself from other decentralized lending platforms by continuously adding unique features such as flash loans and rate switching.
As a refresher, flash loans allow traders to open uncollateralized loans that are repaid in the same transaction as it’s taken out. This is typically use