The AAVE coin is a Governance token operating with the ERC-20 standard, with an original name of Lend. It operates with the Aave Protocol wherein users are able to lend or borrow from Decentralized Lending Pools. The pools operate with digital coins that are traded back as AAVE coins.
The Aave Protocol accounts as one of the most popular forms of Decentralized Finance (DeFi), with the AAVE coin also one of the widely used tokens around the world as well. However, digital coins traded must only be on the Ethereum platform, which would then be fed into the system’s coin pool. Users would then be able to access this pool to either create lending or borrowing transactions with other digital coins put down as collateral.