• 19/11/2024

The Aave protocol, a cornerstone of decentralized finance (DeFi), is reshaping the financial industry with its innovative approach. Founded in 2017, Aave began as a blockchain-based lending platform and has since evolved into the world’s largest decentralized bank, offering solutions that rival traditional financial institutions.

How Aave Works

Aave operates by allowing users to deposit digital assets into liquidity pools. These assets act as collateral for loans, and depositors earn yields for their contributions. Unlike traditional banks, Aave eliminates intermediaries, relying on blockchain smart contracts to reduce costs and increase transparency.

Loans are backed by collateral, and interest rates adjust dynamically based on market demand. This creates a flexible system where both investors and borrowers benefit.

Connecting with the Real World

Recently, Aave introduced the concept of Real World Assets (RWAs) in collaboration with other protocols like Centrifuge. This initiative enables real-world assets, such as real estate or business loans, to be financed through Aave’s decentralized infrastructure. This significant step bridges the gap between decentralized finance and real-world economic needs.

The GHO Stablecoin and Future Innovations

One of Aave’s most ambitious projects is the launch of its own stablecoin, GHO. Designed as a decentralized and stable payment method, GHO aims to play a role similar to that of central banks in traditional systems, but with governance rooted in blockchain. This innovation is poised to further expand Aave’s reach and solidify its leadership in the DeFi space.

Impact on the Financial Market

Aave is challenging traditional banks by providing a more efficient and accessible financial services model. While traditional institutions rely on high operational costs and bureaucracy, Aave leverages blockchain technology to democratize access to credit and financial returns, potentially revolutionizing the industry.

This transformation benefits not only the crypto sector but also has far-reaching implications for the global economy by securely and transparently connecting investors with real-world financing needs.

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PERIODIC BURNING

A percentage of transaction fees from manual arbitration operations, in addition to the full amounts from License purchases for operations in the automatic arbitration system, will be used to burn Clash Hub Coin tokens. This will accelerate burning, decrease supply, and increase scarcity of the token.

100% of tokens converted to USDT during withdrawals from the staking system, arbitrage system and flash loans will be burned, promoting a continuous decrease in the total supply.

OBJECTIVE OF BURNING

Reduce 90% of the total supply over 1 year through periodic burning and conversions of staking rewards and token affiliate system into USDT. 90% of the supply will be burned, equivalent to 900 million tokens at a price of $0.01, corresponding to 9 million dollars in transaction volume. Then the current model of the affiliate system will conclude and the token will be launched in the public sale phase after the full burning of 90% of the supply.

Total supply of tokens will be burned and released on DEX`s for public sale at a price of $0.02, doubling the capital of Clash Hub Coin Token holders.