Introduction

In this analysis, readers will learn about the AAVE platform on the Ethereum chain. Additionally, at the conclusion of this report, a comparison will be made between AAVE on Ethereum and the Optimism chain. The following parameters were analyzed during my review of the AAVE platform:

Deposit, Withdrawal, Repayment, and Borrowing functions

Top Tokens and Users

User Demographics

Net and Average Repayment Periods

Comparison of AAVE on Ethereum with Optimism.

What is AAVE Platform?

AAVE is a decentralized finance (DeFi) platform built on the Ethereum blockchain. Its main goal is to provide a way for users to earn interest on their cryptocurrency holdings or to borrow cryptocurrency assets. Here are some key features of AAVE:

Lending and Borrowing: AAVE allows users to lend cryptocurrency assets, such as Ethereum and stablecoins, and earn interest on their deposits. At the same time, borrowers can use their crypto as collateral to borrow other cryptocurrencies or stablecoins, with interest rates that adjust based on supply and demand.

Flash Loans: AAVE introduced flash loans, which can be issued and repaid in the same transaction without collateral. These loans are helpful for arbitrage opportunities or quick liquidity needs.

Governance: AAVE is a decentralized platform, meaning it is owned and operated by its community of users. AAVE token holders can vote on proposals to improve the platform, such as changes to interest rates, new token listings, or upgrades to the platform.

Security: AAVE is built on the Ethereum blockchain, which provides high security and transparency. The platform also uses smart contracts to automate lending and borrowing transactions, which eliminates the need for intermediaries.

Integration: AAVE is compatible with a wide range of wallets and other DeFi protocols, making it easy for users to access the platform and move their assets between different platforms.

AAVE has become one of the most popular DeFi platforms due to its user-friendly interface, high security, and innovative features like flash loans. However, as with all DeFi platforms, risks are associated with lending and borrowing cryptocurrencies, including market volatility, smart contract vulnerabilities, and liquidity risks.

Method

The code selects data from four different tables on the Ethereum Aave blockchain, calculating various metrics for each table separately, like total transactions, total users, total volume, etc. The data is then merged using UNION to provide an overall picture of borrowing, Deposit, Repayment, and Withdraw activities on the Aave platform. Additionally, a 7-day moving average is calculated for the average volume of each activity type. WHERE clauses filter data based on a specified number of days.

The first tab, "AAVE Activities," displays information related to the activities performed on the AAVE platform. This tab includes data on the Supply, Withdraw, Repay, and Borrow activities. You can use this tab to track the volume, number of transactions, and number of users who performed these activities.

The second tab, called "Tops," provides information on the top tokens and users on the AAVE platform. This tab is handy for identifying the most popular tokens and the most active users.

The third tab is called "Ethereum Vs. Optimism," enabling you to compare AAVE's performance on Ethereum and Optimism. This tab displays data on the number of transactions, volume, and users on both platforms, allowing you to identify any differences in performance between them.

Please Note that all Contents were written by Me, not copied from other links.

AAVE Overview