AAVE: Critical to own? $AAVE worth it? Detailed study w Price Predictions thru 2032
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 Published On Premiered Jun 23, 2021

#AAVE $AAVE #AAVEWorthIt #Ethereum #AAVEPricePredictions #MAKER
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0:00 Intro

0:20 IA Token Valuation Process

1:00 What It Does

2:00 Ranking & How it Plays
Aave is a decentralized lending and borrowing platform built on Ethereum
Lending and borrowing on Aave is extremely simple
Users connect to its interface via supported web3 wallet such as Metamask, in order to:

3:00 AAVE is FINNISH for GHOST Aave Protocol has adopted a fully decentralized autonomous organization (DAO) governance model.

4:00 What it Does
Simply put it is a bank. Like Celcius or Blockfi…. But Decentralized.

5:00 Background
Founder: Stani Kulechov
Kulechov - One of the first to work on decentralized lending. Founded EthLend
Serial entrepreneur, programmer with a degree in law school and early adopter in the blockchain
VISION
To create a transparent and open infrastructure for decentralized finance

6:00 Scorecard Ranking
Top Defi Lending/Borrowing platform by market cap.
https://coinmarketcap.com/currencies/...

7:00 Industry Disruption
$25B in value locked into Defi lending, ~30% Aave dominance (June 2021)
[1] Defi Pulse. https://defipulse.com/.
Number 1 in value locked for all of Defi. (June 2021)
20% dominance for AAVE

8:00 Decentralized lending has seen explosive growth in just one year
$17B locked up in Aave between v1, v2, AMM, and AAVE polygon in June 2021, up from $200 million less than a year ago

9:00 Value Propositions
Decentralized permissionless borrowing and lending
Lenders deposit cryptos on Aave and earn interest on those cryptos
Anyone can get a loan from anywhere in the world, no paperwork, no credit checks, no KYC
Open sourced and fully transparent lending and borrowing. Rates are market-determined. Transaction and liquidity are on the blockchain where anyone can verify
SECRET SAUCE: Stakeholders can lose 30% if something goes wrong with the protocol - self-regulating!!!

10:00 RISK: Always make sure you are collateralized against a drop in underlying assets eg Matic in this case or you can get liquidated
Value Propositions
https://technode.global/2021/05/03/wh...

11:00 Technology & Developers
Aave is at the cutting edge of decentralized debt instruments
Over collateralized loans - Borrowers must put up collateral that is more than the amount they are borrowing and must stay above the collateralization threshold or risk liquidation
Flash loans - Uncollateralized loans that can be borrowed and repaid in one transaction, allowing arbitrageurs to execute swaps without having a principle

12:00 Tokenomics
Most robust of all Tokenomics - not inflationary as yield comes from assets lent in it. There are a total of 16M $AAVE tokens, of which ~12.5M are currently in supply, with the remaining 3M owned by the founding team. This level of decentralization is certainly encouraging when compared with Compound, where ~50% of tokens are still owned by the founding team and investors. No relentless token issuance.
The inflation rate is 1.2%

13:00 Ecosystem
[1] https://aave.com/

14:00 Longevity and Track Record
Founded in May 2017 as ETHLend raised $16.5 million in its ICO
August 2020 Aave had raised $25M from its Series A with venture capital backers such as: Three Arrows Capital, Framework Ventures, ParaFi Capital, and DTC Capital
[1] https://cryptobriefing.com/aave-raise...

15:00 Bloody Wednesday & AAVE

16:00 Risks
Vast majority of the liquidity comes from centralized stable coins and centralized wrapped coins such as USDC, WETH, WBTC, Tether.
The abundance of lenders who want to earn interest, but borrowing seems to have plateaued over the last month

16:10 Chart
Back at Jan 18, 21 levels. 200 DMA is 320 and 50 DMA is 380. RSI has bottomed THRICE -

16:30 Price Prediction
Price pred from Wallet Investor and Crypto Price Predictions - thru the roof at 5K in 2025 and 6300 and also 12500 in 2030

17:00 IA Price Prediction

19:00 Conclusion

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