What are the key features of Aave that differentiate it from other DeFi lending platforms?

Key Features of Aave

Overdraft System: Unlike many lending protocols that only allow users to borrow up to their collateral value, Aave's innovative "overdraft" feature allows users to borrow more than their collateral value, depending on the available liquidity.

Flash Loans: Aave pioneered the concept of flash loans—unsecured loans that must be borrowed and repaid within a single transaction block. This unique feature enables developers to access large sums of capital without collateral for a short duration.

Interest Rate Switching: Aave offers both stable and variable interest rates, allowing borrowers to choose their preference based on market conditions and personal risk tolerance. This flexibility can help borrowers optimize their costs.

Liquidity Pools and Collateral Assets: Aave supports a wide variety of cryptocurrencies as collateral, including stablecoins and ERC-20 tokens. Its dynamic liquidity pools allow users to earn interest by supplying assets and providing liquidity for loans.

Governance Token - AAVE: The AAVE token is used for governance purposes, allowing holders to vote on proposals that affect the protocol. This community-centric approach influences Aave’s ongoing development.

Aave Safety Module: This provides an additional layer of security as it holds a portion of AAVE tokens that can be used as a backstop to cover any potential losses from the protocol.