AAVE Complete Beginner's Guide to Lending Market | How It Works and Why You Need It

[00:02] It is very strongly valued in DeFi, specifically in cryptocurrency. And this is a market or platform where you can borrow any cryptocurrency using the Let's say I have Ethereum, I can put it as collateral and

[00:16] put it as collateral and take, say, USDT or USDC against my Ethereum. I can transfer these USDCTs to other platforms where, say, they pay for staking, and thus earn passively, without doing anything, and with

[00:29] minimal risk. In my last video, I covered the entire topic of Def this video, which is right here now, the hint [music] will pop up here or here, you will understand the topic of Defi. And there I also promised to analyze in detail

[00:41] each platform, namely Landing Market Ave, Uniswop, Puncake Swop, Hyperliquid and other platforms that we will need to work in the Defi sphere. Today we're moving to AVI, the largest and most reliable

[00:54] landing marketplace in Defi. I have already explained the operating principle to you in my greeting. I'll just say here that $45 billion is locked in this protocol. That is, we currently have $45 billion in liquidity. Of these, 25 are

[01:09] liquidity. Of these, 25 are available, 17 are in loans with interest. That is, almost 17, even 18 billion dollars. People deposited their crypto so that others could borrow it and, say, trade in

[01:21] liquidity pools or other ways to earn money on DeFi. This is the most reliable, most powerful, and so far unhacked food-food marketplace in existence. Large funds that are somehow

[01:33] will analyze everything in order, from top to bottom, from left to right, just like people do. The first is the dashboard. This shows your rewards, as well as your you have lent. I don't have anything here yet because I need to

[01:46] connect the wallet. Let's do this right now. I've already mentioned that all Defi platforms operate through decentralized wallets. Through Mmeask, through Phantom, through, let’s say, Byb

[01:59] bybit [laughter] Bybit Web 3.0, that is, dek wallets that are not somehow tied to the exchange. The best of them, the most reliable and used the longest is probably Metamask. But I would also recommend that you

[02:12] explain how to connect it. Well, let's show you today using Metamask as an example. And I’ll create a wallet right together with you, so you know how to do it from start to finish. If you create MetaMask for yourself, you will

[02:24] create new wallet button. Here you can do this through your email, but I phrase. Create a password here. Damn, I thought this would be faster, to be do all of this. Let's have some 1 2 3 4 5 6 1 2 3 4 5 6. Then never

[02:42] do like me. I won't need this wallet . And, actually, I'll forget about him I click the "Create password" button. They immediately tell me that Metamask doesn't know never regain access to

[02:56] secret phrase. A so-called sit-phrase, which consists of order not to do this in a note, it's better not to do this in a photo , it's better to do it the old-fashioned way, and write it down on a piece of paper with a

[03:08] continue button. Here you will need to restore your phrase , click the " Continue again" button, and your wallet is ready. I won't go into details any well, overall, everything is intuitively clear there. And by the way, I have a separate

[03:20] huge video on how Metamask works. Here you go, 1 2 3, so you can go and watch them. Well, when we connect the wallet, as you can see, it’s still not connected here. I'll click the Connect

[03:32] created. For me it will be Rabbit Wallet. I will be transferred to confirmation of this action. And that's all. Now they show me my wallet balances. existing. That is, I borrowed USDT. I don't know why they haven't completely

[03:47] discuss that later. You and I are not interested in this. We'll come back to the dashboard later, as well as the market. But here we will have to discuss the market with important buttons that is here. This is where you will lend or

[03:59] borrow cryptocurrency. The first thing we see is an asset that we want to lend, as collateral, in order to borrow another cryptocurrency. Let's say Ethereum. What we see here is a total pool of $9 billion that we have,

[04:12] Ethereum, and $3 million of that is available to lend to other users who trade on the dex . We see the following. Supply. . We see the following. Supply. Supply Pi, yes, Supply API is the percentage

[04:25] providing your Ethereum. Just like that , huh? Ethereum was provided, people trade your ether, and you receive interest for it. We see the total amount of Ethereum funds that were borrowed. We see [music]

[04:39] that we have almost 7 billion in loans, two of which are free. And then we have the interest on the loan. That means I can borrow Ethereum from Ava at a little over 2% per annum. Let's click the details button. In this jacket, we'll select Ethereum and click the

[04:56] Supply button. So, we will connect, uh, our wallet, or rather, we will lend our Ethereum to other users. Let's press the Max button. And I will now invest all the Ethereum that I have, well, roughly speaking, into a loan pool. I will be

[05:10] charged interest for this. The gas is very high right now because crypto is falling very sharply. Bitcoin has already fallen from $105,000 to $99 and will most likely fall further. So, well, I'll pay for you, so to speak, for the video. Please rate,

[05:23] This will be the best gratitude for me . Here you can choose, . Well, I recommend always taking the standard one. It in decentralized finance, you pay gas, a gas fee, that is, a

[05:37] pay gas, a gas fee, that is, a transaction fee, for SUOP, that is, For example, when you invest your cryptocurrency in some pool, you always pay a transaction fee. In general, you always pay for any transaction confirmation

[05:49] my amount here is less. I have now corrected it, since I do not have enough commission for , I added a little less Ethereum to the literally a few seconds. That's it, the transaction is complete. As I said,

[06:04] about 20 seconds passed and there were no problems . I click OK and dollars that I deposited are now in my pool. For them I get this kind of income. And by clicking this button, I allow you

[06:20] to take any cryptocurrency using my ether as collateral . In this case, I digital dollar for those who don't know. And we can then add annual interest to it and make money from it. Now I'll explain to you how using a simple example. Let's

[06:34] say I took Ethereum, I'm already paid 1.32% for it. And let's see what pays the most. They pay the most for providing USD Coin. This is also one of the most popular stable coins.

[06:48] If you lend out your USDC, you are already getting 5% in income. That is, you can do nothing, just put them here in the pool, and you will get 5% of the income . No American bank offers such returns on the stock exchange. And

[07:03] the yield on USDT there is also in the region of 3-2% of $500. On USDC it is just as combine and make your income much higher. For example, on

[07:15] much higher. For example, on USDE, a stable coin from the Etal LAABS project, you can get 8% per annum simply for putting your USD into go back to the main page. We have now laid down the broadcasts. I

[07:32] already get 15% for it. Now, for example, I can go to Tezer and click the Details button and borrow to Tezer and click the Details button and borrow USDT for $25 or less,

[07:44] so that my health factor, that is, the risk factor, and the liquidation of my cryptocurrency, is less. With these USDT, I can buy USD, that is, the token highest yield, and simply put it, here by the Details button,

[07:58] here by the Supply button in the loan pool, and I will be paid 1.5% for the Ether, I will pay 5% for the loan that I took out in USDT, and I will be paid another 8%

[08:10] simply for the fact that I put the UDTs that I bought with the borrowed UDTs into the pool. That is, I don’t participate in my crypto at all , but I earn 5% per year or 7% per year

[08:22] very easily and simply. It's clear that you could have simply put USD coins more or less the same. I just showed you an example of a connection that could exist. If you use other landing markets, or, say, a liquidity pool, the

[08:35] higher. Unfortunately, I forgot to tell you about the risks . This is probably the most important thing. If I simply put Ether on loan, lend it to other users, I have no risk at all . That is, my airtime is simply

[08:47] as I said, I take out a loan in USDT or any other cryptocurrency, the exchange, if the collateral cryptocurrency in the form of my ether falls sharply, may liquidate my position. That is, to take all the money

[09:02] that I have as collateral in payment for the fact that my cryptocurrency as collateral becomes cheaper. So, let's say I invested in Ethereum when Ethereum was worth $4,000, and now Ethereum is worth $ 3,500, it has lost $500 in value.

[09:14] The exchange needs to compensate them somehow. Therefore, in order for the Hлth factor to be as high as possible, that is, as good as possible, we can take not the maximum allocation, that is, the maximum amount you can take using your ether as collateral is 70% of its

[09:27] value. I put in ether for 10,000 dollars , and I can take USDT for 7,000 bucks. Take not 70%, but say 50. I invested $10,000 in Ethereum, took $50,000. My l-factor is very high. Liquidation is unlikely to

[09:39] in any strategy. take a little less, or take a huge position, so that you always have enough collateral to avoid have discussed the most important points. Let's go through the site. What else do we have?

[09:52] Avi Governance is an AV protocol governance. If you have AVI tokens in your wallet, you can participate in the governance voting for this project. That is, let's say, for the inclusion of some new smart contracts, for the transfer of

[10:06] some smart contracts to others, or for any decisions that occur in the AVI protocol. You can vote for this and you will be awarded so-called points, for which you can later receive drops, yes, that is, a

[10:18] in fact, a part of this large Defi industry. Savings, let's speak Defi industry. Savings, let's speak Russian. GO is a stablecoin released by the decentralized Landing Market AV. Here they give 6%

[10:31] same schemes as I told you, take GHO as collateral, deposit them here and receive a reward. That's it, also about 7-8% return per year - that's cool. This is something that no bank will give you again. At the same time, your crypto

[10:47] remains with you. That is, you don't sell the ether, and if it grows, you can repay the loan , get the ethereum and sell it. You don't buy new cryptocurrency, you don't some altcoins that might fall. Just trade your crypto. For

[11:02] this you can easily and simply receive a pretty good income per year . Staking, UMbrella - this is, uh, again, staking, which we have on the Avi protocol. Basically, it's the same thing we discussed in the market section. We

[11:15] about 6% here, but you see, we don't have liquidity for this staking. There is liquidity only for staking wrapped Ether. This is VAT ETH - an ether created specifically for trading on dexes. Their

[11:29] can't stake Ethereum on decentralized platforms. And for this purpose, platforms came up with wrapped ether. It is numerically equal to ordinary ether. In short, guys, this is a topic for a separate video. You just

[11:43] know that VTH is the same as Ethereum for some More button, you can learn about the developers, the site, and the old markets that were previously on AVE. Well, it was made for those who once

[11:58] had coins there, so that the work could continue and their coins could be picked up and redeemed. Or continue staking previous pools. The next button is the GHO bridge. Here we can exchange these tokens from one network to another. For this

[12:13] this project. There is, in principle, nothing more to say here. We can also exchange one cryptocurrency for another in different networks right here on Ava. To do the so-called swap, that is, an

[12:25] which we connected earlier. Click the settings button here to access the interface settings. In general, we have completely analyzed the AVI protocol, and now you know how a beginner can work here effectively . Well, guys, that's how

[12:38] figured out the AVI protocol. If you have any questions, be sure to write them in the comments and to Denisov Trade's channel? As always, I wish everyone profit. Bye everyone.