Aave (previously LEND) is an open source and non-custodial protocol enabling the creation of money markets. Users can earn interest on deposits and borrow assets. The Aave Protocol shifts Aave from a decentralized P2P lending strategy (direct loan relationship between lenders and borrowers, like in ETHLend) to a pool-based strategy. Lenders provide liquidity by depositing cryptocurrencies in a pool contract. Simultaneously, in the same contract, the pooled funds can be borrowed by placing a collateral. Loans do not need to be individually matched, instead they rely on the pooled funds, as well as the amounts borrowed and their collateral. This enables instant loans with characteristics based on the state of the pool. “Aave” is a Finnish word which translates to “ghost” in English, representing Aave’s focus of creating a transparent and open infrastructure for decentralized finance.