Aave is a lending protocol that supports borrowing and lending of crypto assets. It is sensitive to market volatility, liquidity, and risk parameters.
Why it could matter in 2026
- One of the most established DeFi protocols
- Core primitive for DeFi credit markets
- Multi-chain deployment footprint
Key risks
- Smart contract and oracle risk
- Liquidation and bad debt risk during crashes
- Regulatory uncertainty impacting DeFi