Try Quests to earn cryptoOpen Analytics Bounty: ETH (Review of the AAVE project On the ETH blockchain)
Open Analytics Bounty: ETH
What is Aave? (AAVE)
One of a number of emerging DeFi cryptocurrencies, Aave is a ==decentralized== lending system that allows users to lend, borrow and earn interest on crypto assets, all without middlemen.
Running on the Ethereum blockchain, Aave instead is a system of smart contracts that enables these assets to be managed by a distributed network of computers running its software.
This means Aave users do not need to trust a particular institution or person to manage their funds. They need only trust that its code will execute as written.
At its core, the Aave software enables the creation of lending pools that enable users to lend or borrow 17 different cryptocurrencies including ==ETH, BAT and MANA.
Like other ==decentralized== lending systems on Ethereum, Aave borrowers must post collateral before they can borrow. Further, they can only borrow up to the value of the collateral they post.
Borrowers receive funds in the form of a special token known as an aToken, which is pegged to the value of another asset. This token is then encoded so lenders receive interest on deposits
A borrower may post collateral in DAI, for example, and borrow in ==ETH==. This allows a borrower to gain exposure to different cryptocurrencies without owning them outright.
Aave can also introduce additional features, such as instant loans, and other forms of issuing debt and credit that take advantage of the unique design properties of ==blockchains.==
What is ETH
Ethereum is a ==decentralized blockchain== platform that establishes a peer-to-peer network that securely executes and verifies application code, called smart contracts. Smart contracts allow participants to transact with each other without a trusted central authority. Transaction records are immutable, verifiable, and securely distributed across the network, giving participants full ownership and visibility into transaction data. Transactions are sent from and received by user-created Ethereum accounts. A sender must sign transactions and spend Ether, Ethereum's native cryptocurrency, as a cost of processing transactions on the network.
Benefits of building on Ethereum
Ethereum offers an extremely flexible platform on which to build decentralized applications using the native Solidity scripting language and Ethereum Virtual Machine. Decentralized application developers who deploy smart contracts on Ethereum benefit from the rich ecosystem of developer tooling and established best practices that have come with the maturity of the protocol. This maturity also extends into the quality of user-experience for the average user of Ethereum applications, with wallets like ==MetaMask, Argent, Rainbow== and more offering simple interfaces through which to interact with the Ethereum blockchain and smart contracts deployed there. Ethereum’s large user base encourages developers to deploy their applications on the network, which further reinforces ==Ethereum== as the primary home for decentralized applications like ==DeFi and NFTs.== In the future, the backwards-compatible Ethereum 2.0 protocol, currently under development, will provide a more scalable network on which to build decentralized applications that require higher transaction throughput.
Topic
Review of the AAVE project On the ETH blockchain
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Borrowing & Lending
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Stake and Unstake
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Introduction
> ## Description
The line graph above is related to deposit and borrowing over time, the two numbers you see on the left and right side are related to total depositor and total borrow.
Description
Looking at the top 20 liquidated borrowers, we see a wide range from $45M to $2.7M USD. The top two most liquidated borrowers have lost a nearly $45M USD each!
The number #3 ranked borrower has lost about $21M USD less at $24M USD.
Top 3 most liquidated borrowers liquidated amount would currently be worth 2x on average!
Our top 3 liquidated borrowers lost significant amount. Most surprisingly, the #3 ranked borrower who lost $23M USD, that liquidated amount would now be worth $65M USD — almost 2.8x!
Our top 2 liquidated borrowers' liquidated amount would also be wort quite a bit more $78M vs $44M and $64M vs $45M USD.
Description
The highest number of stake transactions can be seen on October 3, 2020.The highest number of unstake transactions can be seen on February 14, 2021.
It seems that the number of stake transactions is decreasing from the beginning to April 1, 2021, and an increase in the number of short-term stake transactions also happened after that, but at the end of 2021, until today, stake transactions have decreased a lot. And on July 19, 2022, a jump occurred and stake transactions reached 1035 on that day.
The number of unstake transactions is also decreasing day by day from May 24 to today, but it is interesting that in the same leap that occurred in 2022 for the number of stake transactions, it is not seen in unstake transactions.
The highest number of stake transactions of Aave token in 2020 was on October 3 with the number of 1301 transactions.
the method
To get the data you see, I have used the data in the tables related to eth flipside, as well as the addresses of the following contracts.
ethereum.core.fact_event_logs
ethereum.core.fact_hourly_token_prices
'0x4da27a545c0c5b758a6ba100e3a049001de870f5'
'0x4da27a545c0c5b758a6ba100e3a049001de870f5' ---stake
'0x4da27a545c0c5b758a6ba100e3a049001de870f5'---unstake
'0x7Fc66500c84A76Ad7e9c93437bFc5Ac33E2DDaE9')