Aave
In the DeFi space, Aave is one of the successful projects that enable people to lend and borrow money with the help of smart contracts. Smart contracts are programs that can automate transactions based on user-defined criteria. The project was initially built on the Ethereum blockchain and later expanded to Avalanche, Harmony, and Fantom.
To lend money, you need to deposit your cryptocurrency into the platform’s liquidity pool, from which borrowers can borrow the crypto, and you can earn interest from it. In the case of borrowing, you have to pay interest. In other words, Aave is one of the best utility tokens so far with the purpose of providing users with direct liquidity.
Besides, the platform has partnered with companies to enable people to tokenize real-world assets and lend/borrow them through the protocol. These help people earn even with their tangible assets.
