Aave is a decentralized crypto-lending platform that uses smart contracts to automate processes and set rules for how funds are distributed, how collateral is handled, and how fees are assessed. Aave is based on the Ethereum protocol that offers automated crypto loans. Aave also offers its own native Token called AAVE. AAVE can be traded on most exchanges or staked in the Aave platform to earn interest. Aave doesn't match borrowers with lenders directly but instead, liquidity pools are provided from which the borrowers can borrow.