The biggest lending markets on Aave are all for stablecoins. A stablecoin is a cryptocurrency with a value pegged to a specific asset. The largest market, worth $155 million, is for a stablecoin pegged to the price of Ethereum.

When the utilization rate goes higher for the reserve, it yields higher earnings for the depositors on Aave. Also, borrow rates will vary for different assets according to the stable or variable rate for that particular asset.

Aave Token holders will receive earnings continuously with evolving market strategy based on the Interest rate paid on the loans. Depositors share the interests paid by borrowers with respect to the average borrow rate and its utilization rate.

Aave is an open source and non-custodial liquidity protocol for earning interest on deposits and borrowing assets.