## aave protocol

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### tl; dr

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* decentralized lending protocol that lets users lend or borrow crypto assets or real-world assets (RWAs) without going to a centralized intermediary.
* users deposit digital assets into liquidity pools, which become funds so that the protocol can lend out.


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### tl; dr aave v3

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* **portal**: allows flow of liquidity between aave v3 markets across different networks (governance-approved bridges can burn atokens while minting them on the destination network)
* **emode**: the high-efficiency mode allows borrowers to extract the highest borrowing power out of their collateral when supplied + borrowed assets are price-correlated (e.g. both are derivatives of the same underlying asset).
* **isolation mode**: new assets can be listed as isolated so borrowers cannot supply other assets as collateral (but can capture yield) but only approved stablecoins.
* **siloed borrowing** allows assets with risky manipulatable oracles to be listed as a single borrow asset.
* **multiple rewards** per token.
* **chains**: avalanche, pptimism, polygon, fantom, harmony and arbitrum.

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### resources

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* [liquidations, by aave protocol](https://docs.aave.com/developers/guides/liquidations)
* [aave v2 whitepaper](https://github.com/aave/protocol-v2/blob/master/aave-v2-whitepaper.pdf)
* [aave v3 docs](https://docs.aave.com/developers/getting-started/readme)