Well here we will be looking at the daily and total changing patterns compared to the last year.

For the Borrowers count change as i have told you before the users nearly got two times bigger than the last year which the changing percentage of borrowers is at total percent of 95.2%. The only day that the borrowers count went minus was on Januray 5th, The rest of the days the year 2023 has taken the majority of the users.

For the Amount line we see less increasing stats than the count of users and here we have more days which the percentage stands at less than 0, This means although the count of borrowers has gone so higher but the borrowed amount of each user went lower (The distribution charts for borrowed volume has been added to the dashboard which you can access to it on the way down.

By the increaase of the borrowers, The count of repayers went lower and lower by each day but the point is the returned volume is so much worst than the users and the amount of repays has gone so lower than the last year.

The distribution charts shows that the users mostly borrowed the amounts of more than 10000$ for both years which is so high. over all we see no much differences for both years for borrowed amounts.

The repayers follow the exact pattern of the borrowers and nothing more.

Over all we can say that the borrowers lends the higher amounts to have better income than borrowing the amounts of less than 1000$.

The cumulative charts shows that for the first few days the borrowed amount for both years were almost same but after the day January 12th the borrowed amount for 2023 has gone higher and for the repays we see that their were almost the same but after the January 20th the stats changed and the repayed amount of 2023 went lower than the last year.

The Net Worth charts shows a better situation for 2023 because it didn't have gone lower than 81 Million but in 2022 we had 1 Billion $ lost on 22th January.

The count of borrowers has raised a lot in 2023 nearly got two times bigger and on the daily chart the obvious thing is the majority of borrowers for users, As the deposits gone higher in 2023 so the borrows gone higher too.

Although the count of borrowers for 2023 has raised a lot but we see that the repayers are getting less than the last year, The total count of repayers stood on 6.6 thousand for the year 2022 but now the number decreased on 4.9 thousand.

By the increased stats of borrowers for 2023 the amount of the borrows will follow the same and we see a good increasing volumes in the chain.

But the returned volume gone lower from 3.7 Billion to 2.9 Billion.

Over all the repayed amount for the 2022 is so much higher than the amount of borrows but in 2023 the amounts of borrows and repays got so close to each other and the difference is only 100k $.

Introduction

What Is AAVE Protocol?

Aave is an Ethereum-based protocol that offers automated crypto loans. Users can deposit cryptocurrency as collateral and borrow other cryptocurrencies, up to a certain percentage of the collateral value. This is known as the loan-to-value (LTV), and Aave limits the borrowed amount to 80% of the current value of the pledged collateral.

Aave uses smart contracts, which are programs that automate the borrowing process by calculating the loan terms, collecting the deposited collateral, and distributing the cryptocurrency being borrowed. Smart contracts are what enable Aave to operate without the need for a third-party intermediary.

For lenders, Aave allows users to deposit crypto into the platform and earn interest that is paid out by the borrowers. Instead of matching lenders and borrowers directly, Aave offers liquidity pools into which users can deposit crypto assets, and those crypto assets are lent to borrowers.

Aave Borrowing

To borrow crypto on the Aave platform, users will need to first supply crypto on the platform as collateral. Once the collateral is deposited into the liquidity pools, users actually earn interest on these deposits.

Once funds are deposited, users can search through the supported crypto assets to borrow, and Aave automatically calculates how much they can borrow. Because each crypto asset has different characteristics, Aave dynamically calculates the available amount based on the value of the deposited crypto, the value of the asset, and the volatility of the asset.

Once the crypto is chosen, users can confirm the transaction, and the crypto will be deposited into their connected wallet.

All Aave loans are overcollateralized, meaning that the value of the assets deposited will always exceed the value of the crypto loan. Aave limits borrowing to protect lenders and liquidity providers from losing money if the loan collateral drops in value. Collateral that has a higher volatility will have a lower LTV than more stable assets.

Loans have no time line to be repaid, but repayment must be in the same form as the cryptocurrency that was borrowed. This means that if a user borrows $100 worth of USDT, they will need to pay it back in USDT (plus interest).

AAVE Risks

Aave is an automated protocol that allows users to borrow funds after pledging their own crypto assets as collateral. But as with any lending platform, there are a few risks involved:

Liquidation risk: If the pledged collateral is a volatile crypto asset (such as ETH), and the value drops too far, then the ETH may get liquidated. This is a very undesirable result, as it means that the ETH is sold off after a price drop.

No insurance: Aave does not offer insurance on its platform, so user funds are not protected. As with other decentralized crypto platforms, there is no Federal Deposit Insurance Corp. (FDIC) insurance, and lost funds or crypto sent to the wrong address will not be reimbursed.

Crypto volatility: Cryptocurrency is inherently volatile, and using crypto assets to pledge collateral for a loan can lose a user a significant amount of money.

First, the funds are locked into the contracts and cannot be accessed until the loan is paid off. Second, the rules for required liquidations mean losing those funds when the value drops.

Liquidity risk: While Aave lists the available liquidity for each cryptocurrency on the platform, users that deposit crypto may not be able to withdraw funds if the liquidity drops too far. This means that they would need to wait until more crypto is deposited by other users to be able to withdraw funds.

Methodology

Here we go with another dashboard of comparing the year 2023 by the year 2022, This time on AAVE protocol.

Well it's been a long from the time that AAVE protocol has announced its loaning system over the past years, But how far did it go ?!, I mean is the protocol getting better by each day or it is not.

So in this dashboard we are going to take a look at the changed data of the system from the first month of the year 2022 to the first month of 2023.

Firstly you'll be having a summary of the depositors behaviuor over the first tow months of the both years then you will be able to seek out more bout the borrowers and their borrowed amount with their stats of repays in total and daily amounts with distribution of volumes.

For gathering the data i have used all these tables including ethereum.aave.ez_withdraws / ethereum.aave.ez_deposits / ethereum.aave.ez_borrows / ethereum.aave.ez_repayments

Hope you can see this dashboard usefull on the way down ... !

Conclusion

This dashboard contained total stats of borrowing specs which you have seen the stats but let's see does AAVE worth it?

Well The deposits went higher than the last year and the net worth has got better too so It might go up, or it might not. Some AAVE price predictions expect the lending token to rise over the coming years, but not all forecasters agree. DigitalCoinPrice, for instance, believes AAVE will pass the $500 mark within the decade, while WalletInvestor expects the token to lose most of its value over the coming years.

Remember, cryptocurrencies are highly volatile and you should never invest more than you can afford to lose.

AAVE is available on most crypto exchanges. Take a look and see which one has the best deal for you. Remember only to invest what you can afford to lose, and bear in mind that prices can go down as well as up.

The Aave token is primarily used for governance, meaning it could be worth investing in if you want to have a say in votes on the lending platform. The price of its token is expected to rise by most price predictions, but not all are hopeful for AAVE. So if you wanna take a part in the AAVE protocol make more research and search for more dashboards to have some details about Deposits and pools stat and even govarnance affects on the protocol.

Hope you have enjoyed what's inside the dashboar ... ( -_- )