1. Aave
Aave is a DeFi lending protocol deployed on 12+ blockchains, that allows users to lend and borrow a wide range of cryptocurrencies.
Interest rates are variable and algorithmic, adjusting automatically according to supply and demand. The Aave protocol also has its stablecoin, GHO, backed by assets in Aave V3.
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Its native governance token, AAVE, enables holders to vote on proposals affecting the protocol’s direction. AAVE can also be staked, serving as a safety mechanism to protect against liquidity shortages in return for interest.
Aave began as a lending-only platform called ETHLend. It rebranded to Aave in 2018, as it looked to expand its scope beyond just lending.
| Launch Date | May 2017 |
| Founded by | Stani Kulechov |
| Audited by | Trail of Bits, Certora, OpenZepplin, Sigma Prime, PeckShield, and ABDK |
| Hacks & Controversy | No major hacks to date. Encountered a “failed short attack” in 2022, and a small impact on an old version of the protocol (V1) in 2023. |
2. MakerDao
MakerDAO was one of the first projects designed for Ethereum, founded in 2014. It manages the stablecoin DAI, which launched in 2017.
DAI is pegged to the US dollar and backed by crypto collateral. Users lock cryptocurrencies in the MakerDAO smart contract to generate DAI.
MKR token holders, who vote on proposals, control the protocol’s governance. They also control factors such as the whitelisting of collateral assets and the Dai Savings Rate (DSR)—a fixed interest rate that distributes revenue from Maker to DAI holders.
The most popular user interface for using MakerDAO is Summer.Fi, previously known as Oasis.
MakerDAO announced “subDAOs” in 2021, to improve governance and efficiency. SubDAOs are additional, smaller protocols built on top of the main platform.
| Launch Date | December 2017 |
| Founded by | Rune Christensen |
| Audited by | Trail of Bits, PeckShield, and Runtime Verification |
| Hacks & Controversy | No hacks to date. Controversy surrounding the addition of USDC as collateral in 2020, leading to centralization concerns. |
