What Is Aave?

Aave is a decentralized finance (DeFi) protocol that lets people lend and borrow cryptocurrencies and real-world assets (RWAs) without having to go through a centralized intermediary. When they lend, they earn interest; when they borrow, they pay interest.

Aave was originally built atop the Ethereum network, with all the tokens on the network also using the Ethereum blockchain to process transactions; they are known as ERC20 tokens. Aave has since expanded to other chains, including Avalanche, Fantom, and Harmony.

• Aave is a decentralized lending protocol that lets users lend or borrow cryptocurrency without going to a centralized intermediary.
• Users deposit digital assets into "liquidity pools," which become funds that the protocol can lend out.
• In July 2022, Aave's community approved the launch of GHO, a decentralized, collateralized stablecoin.

The protocol itself uses a decentralized autonomous organization, or DAO. That means it’s operated and governed by the people who hold—and vote with—AAVE tokens.

How lending works on Aave Traditionally, to get a loan, you'd need to go to a bank or other financial institution with lots of liquid cash. The bank will ask for collateral—in the case of a car loan, that would be the car title itself—in exchange for the loan. You then pay the principal to the bank every month, plus interest.

DeFi is different. There is no bank. Instead, smart contracts (which are computer codes that automate transactions, such as selling if a token price reaches a certain threshold) do the heavy lifting. DeFi removes the middlemen from asset-trading, futures contracts, and savings accounts.

In practice, that means that you can get a loan—in cryptocurrency—from people instead of financial institutions. However, you still have to put up collateral. In a DeFi system that tries to be fiat-free, that means other cryptocurrency tokens.

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Methodology

We used the ethereum.core.fact_event_logs table with Aave v3 pool contract = 0x794a61358d6845594f94dc1db02a252b5b4814adTo collect all the transactions and all other data that we will need .

We divided the transaction to 5 category base on their unique ORIGIN_FUNCTION_SIGNATURE :

ORIGIN_FUNCTION_SIGNATURE in ('0xf7a73840','0x680dd47c') then 'Deposit'

ORIGIN_FUNCTION_SIGNATURE='0x8e19899e' then 'Withdraw'

ORIGIN_FUNCTION_SIGNATURE='0xd5eed868' then 'Borrow'

ORIGIN_FUNCTION_SIGNATURE='0x563dd613' or ORIGIN_FUNCTION_SIGNATURE='0xdc7c0bff' then 'repay'

ORIGIN_FUNCTION_SIGNATURE='0x42b0b77c' then 'FlashLeon'

Overview

What we will cover in this dashboard:

• first we will take a look on overall stats of Aave v3 on Ethereum such as :

  1. Total and daily transactions
  2. Total and Unique users
  3. break Down the users and transactions base on their action

• deep analyze of the supply that users provide in this platform:

  1. Total and daily unique supplier, supply transactions and supply amount in USD

  2. break Down the unique supplier and supply amount base on Tokens in Total and daily
  3. Top 10 supplier base on supply amount
  4. daily supply/withdraw and the pool value

Overall Stats

Observation

Let start with some overall stats for better understanding of what happening in the protocol. The total transactions that Aave have on ethereum is 292K and Total unique users is 74.2K user.

The highest number of transactions was on October 11, 2022 with more than 11.9k TX and also on this day we had the highest number of unique user with almost 5.1k user.

We can see clearly that last days was so active for this protocol and a lot of users attracted to be active on it, the reason may be The incentives offered by this platform or growing of ethereum chain, although we must not forget how much crypto users love airdrop and this may cause lot of activity on different protocol on ethereum such as Aave v3

Most of the transactions and users engaged in supply action, we can see that clearly here which 51.7% of the transaction belongs to the supply and supply also have 45.3% of the users’ activity. Clearly that users love to supply to benefit from the profit that it is to make for them.

At the second rank borrow action come with 28.2% of the transactions and 32.3% of users activity.

There is also withdraw, repay and flash Leon which are in the third to lower ranks

Supply Stats

Observation

The Total supply amount is 194M USD, there are 57.2k unique supplier and there are 132.5k supply transaction.

The highest count of transactions was on Nov 29, 2022 with 7888 TX .

The highest count of unique supplier was on Nov 29, 2022 also with 7780 supplier.

It can be seen here that the increase in daily values is not gradual but sudden and frequent. It can be concluded that these sudden increases are caused by excitement, which can be due to the news.

The highest supply amount in USD was on May 3, 2022 with 5.9M USD.

The supply amounts ranged from 28.7K to 5.9M USD.

Unlike the past daily stats we do not see the sudden increases that caused by excitement because excitement will not bring high amount of money.

Here, in general, there is no large sudden increases, nor is there any gradual increase, but we see a steady trend of values

In the chart, we have the top 10 supplier base the USD amounts they supplied. We can see that the Top supplier is 0x5f153a7d31b315167fe41da83acba1ca7f86e91d

With 7.5M USD supply amount. Most of the Top suppliers have deposited more than 5M USD

Observation

• The Most Token that users love to deposit and the token that has the most suppliers is USDC, 72% of users are intending to deposit USDC and 60.1% of supplied amount is belongs to USDC.
• After USDC at the second rank USDT comes with 7.81% of the users and 15.3% of the supplied amount
• in the daily stats shows us the USDC leading in Daily amount Also which is has the biggest share most of the days
• the last 2 days we see a very strange interest of users to deposit WETH but with very low amount

Observation

Here we can see the daily supply amount in positive amount and withdraw amount with negative amount. Also, we have the value in pools which comes from the difference of the Two supply and withdraw amount.

We can see that the current value in pools is 48M USD, and it is growing with time. The withdrawal amounts in the first days was greater than deposit but with Time passing the daily deposit amount become greater in overall.

Borrow Stats

Observation

The Total Borrow amount is 90.3M USD, there are 71.8K unique Borrower and there are 40.8K borrow transaction.

The highest count of transactions was on Dec 15 with more than 7.3k TX.

The highest count of unique Borrower was on Dec 15 and Aug 26, 2022 also with almost 6.9k borrower.

The values in the last days have been very high, much higher than the values of the previous days. These values must have been created for some reason, this sudden increase could be due to news or an event related to the ethereum network or the protocol itself.

The highest borrow amount in USD was on Dec 13, 2022 with 2.2M USD.

The supply amounts ranged from 23.6K to 2.2M USD.

Although the amount of TX and users was so high on the last 2 days, the Borrow amount had a very low value, so we can conclude that most of the users had borrowed very tiny amount just for some purpose.

In the chart, we have the top 10 Borrower base on the USD amounts they borrowed. We can see that the Top borrower is 0xfba206e73709f614e5a85aff27a98692d4f3c579

With 3.8M USD supply amount. Most of the Top supplier have borrowed more than 1M USD.

Other interesting thing here is the Top supplier same as the top borrower.

Observation

• The Most Token that users love to Borrow and the token that has the most Borrower is USDC, 62.7% of users are intending to borrow USDC and 58.4% of borrowed amount is belongs to USDC.
• After USDC at the second rank DAI comes with 24.6% of the users and WBTC with 16.1% of the borrowed amount
• in the daily stats shows us the USDC leading in Daily amount which is has the biggest share most of the days

Observation

Here we can see the daily repay amount in positive amount and borrowed amount with negative amount. Also, we have the debt value which comes from the difference of the Two repay and borrowed amount.

We can see that the current debt value is 49.7M USD, and it is growing with time.

Conclusion

• The total transactions that Aave have on ethereum is 292k and Total unique users is 74.2k user.
• Last days were so active for this protocol and a lot of users attracted to be active on it, the reason may be The incentives offered by this platform or growing of ethereum chain
• 51.7% of the transaction belongs to the supply
• The Total supply amount is 194M USD, there are 57.2k unique supplier and there are 132.5k supply transaction.
• The Total Borrow amount is 90.3M USD, there are 40.8k unique Borrower and there are 71.8k borrow transaction.
• There are sudden increases are caused by excitement, which can be due to the news or even the airdrop discussion, but this sudden increases did not happen in the daily supply and borrow amount
• The Most Token that users love to deposit and the token that has the most suppliers is USDC, 72% of users are intending to deposit USDC and 60.1% of supplied amount is belongs to USDC.
• The Most Token that users love to Borrow and the token that has the most Borrower is USDC, 62.7% of users are intending to borrow USDC and 58.4% of borrowed amount is belongs to USDC.
• The withdrawal amounts in the first days was greater than deposit but with Time passing the daily deposit amount become greater in overall.
• We can see that the current debt value is 49.7M USD, and it is growing with time.