What is AAVE Protocol?

Aave is an Ethereum-based protocol that offers automated crypto loans. Users can deposit cryptocurrency as collateral and borrow other cryptocurrencies, up to a certain percentage of the collateral value.

Actually, Aave is a decentralized non-custodial liquidity protocol where users can participate as depositors or borrowers. Depositors provide liquidity to the market to earn a passive income, while borrowers are able to borrow in an overcollateralized (perpetually) or undercollateralized (one-block liquidity) fashion.

Read More at AAVE Docs

What is Synthetix? (SNX)

Synthetix is a decentralized asset insurance protocol, and it allows users to mint, hold, and trade a wide range of derivatives – including commodities, fiat currencies, and even stocks. They can also do this for certain cryptocurrencies as well, the most popular being BTC.

What is Maker? (MKR)

Maker is a smart contract platform built on the Ethereum blockchain that aims to solve volatility issues for the crypto market. It is the basis for a new-generation blockchain-based banking system that allows for faster and simpler international payments and peer-to-peer transactions.

What is Uniswap? (UNI)

Uniswap (UNI) is an Ethereum token that powers Uniswap, an automated liquidity provider that's designed to make it easy to exchange Ethereum (ERC-20) tokens. There is no orderbook or central facilitator on Uniswap. Instead, tokens are exchanged through liquidity pools that are defined by smart contracts.

Borrowing in AAVE

AAVE borrowing refers to the process of borrowing cryptocurrency assets from the AAVE protocol. When a user borrows from AAVE, they can use their own cryptocurrency as collateral to take out a loan in a different cryptocurrency. For example, a user could deposit Ethereum as collateral and then borrow stablecoins like USDC or DAI. The user can then use the borrowed funds for trading or other purposes.

AAVE uses smart contracts to automate the lending and borrowing process, eliminating the need for traditional financial intermediaries like banks. The interest rates on AAVE are determined by supply and demand for each cryptocurrency asset, and they can change frequently based on market conditions.

Borrowers on AAVE need to pay interest on the amount they borrow and must maintain a certain collateralization ratio, which means they need to deposit more collateral than the amount they borrow. This helps to protect lenders from potential losses if the value of the collateral drops. If the value of the collateral falls below a certain threshold, the collateral may be liquidated to repay the loan.

In this dashboard, I am going to provide an in-depth analysis of borrowing activity via SNX, UNI & MKR. cryptocurrencies in the AAVE protocol (version 2).

This dashboard has 4 main tabs:

1- Current Market Stats: In this tab, you can see the current market stats for UNI, SNX & MKR tokens in AAVE protocol (liquidity, utilization rate, borrow rate, etc)

2- Overall Borrowing Stats: In this tab, you can see an overall overview of borrowing stats such as total borrow actions, borrowers, borrowed volume, etc.

3- Over-Time Analysis: In this tab, you can see some monthly charts which reflect the over-time trend of borrowing activity on SNX, UNI & MKR.

4- Borrowers Analysis: In this tab, you can see an analysis of SNX, UNI & MKR borrowers activity.