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Build your DeFi platform with an Aave Clone App

With traditional assets not providing high returns to investors, Decentralized Finance is getting more traction now. It offers several advantages like the absence of intermediaries, flash loans for eligible borrowers, and decision-making powers to investors. Which is the most popular non-custodial platform?

It is Aave. Investors have locked in $13.21 billion on the platform functioning on numerous blockchains. Likewise, entrepreneurs can enter the booming industry now with an Aave clone app.

How does an app like Aave function?

  • Depositors need to register on the open-source DeFi platform. They have to pledge a certain amount. This provides sufficient liquidity to the middlemen-free lending platform.
  • Further, borrowers need to create an account on the Aave clone. They can avail a loan. How does this work? They can choose options like under collateralized or over collateralized.
  • Moreover, existing depositors can also borrow virtual assets by utilizing their collateral. What are the different options available? They can choose DAI stable coin, Gemini US Dollar, USD Coin (USDC), Tether stablecoin, TrueUSD (TUSD), Ethereum (ETH) and Binance USD, Basic Attention Token (BAT) etc.
  • Is transparency assured? Yes, of course! Real-time information is available about the annual percentage rate (yearly), total amount borrowed, and borrowing rate in percentage (yearly). Besides that, borrowers and lenders can use options like native tokens and USD.
  • Later, debtors will receive a specific amount in their preferred virtual currency. Accordingly, they have to incur gas fees and transaction processing charges. Likewise, depositors will receive interest for their deposited funds. This will help in managing the interest to be paid while they borrow cryptocurrencies, DeFi tokens, and stablecoins.

Wrapping Up
Looking to replace the roles of banks and financial institutions? Begin Aave clone development by contacting a DeFi platform development company.