AAVE Clone Script
The world is busy, caught up in the NFT buying frenzy. But the potential of blockchain and cryptocurrencies are beyond that and we are yet to realize it. AAVE’s DeFi based lending and borrowing makes for a strong case that we are in just the initial stages of the next big tectonic shift in DeFi Tech.
Why is AAVE Clone Script the next big thing in DeFi?
As long as people have the need to borrow money for their of emergency, the lending and borrowing industry will thrive and flourish.
AAVE Clone Script only makes it easier for anyone to borrow assets from the platform at a really really low interest rate and get the funds transferred into their accounts almost instantly. No additional middle layer of international banks. This ensures that your platform can cater to a wider range of borrowers who are being sidelined by traditional banks relying on EXPERION and other Credit rating agencies.
Also, for lenders it is a great way to HODL and grow their crypto assets without spending them. Most of the investors in cryptocurrencies are Millennials who are now becoming financially literate and are looking for newer avenues to grow their wealth by compounding their cryptocurrency assets.
What better way to grow your crypto assets than lending it for a higher APY from lending protocols.
How does AAVE Clone Script Work?
AAVE Clone script is a Non-custodial decentralized lending and borrowing platform. Lenders don’t have to give up their cryptocurrencies and borrowers won’t have access to the cryptocurrency directly.
From a Lender’s Perspective
Step 1: The lender connects their Metamask wallet on the AAVE Clone. All the supported crypto assets are listed
Step 2: They then proceed to choose the asset to supply liquidity based on data like liquidity supply capacity, number of assets, APY etc.
Step 3: Once they decide, assets are locked into the liquidity pool of the asset they chose.
Step 4: They start earning the interest at the intervals specified.
From a Borrower’s perspective
Step 1: The borrower gets on the platform, connects their wallet. Sees all the crypto assets that they can pledge against.
Step 2: The pledged assets that gets locked in cannot be released unless the loan amount is paid with the interest at the tenure.
Step 3: Once they agree to the terms and tenure on the platform, they can easily borrow the funds.
Step 4: At every interval they choose to pay, they will have to visit the platform to pay back the interest & principal amount.
How does the Platform owner make money with the AAVE Clone Script?
Platform Fee: As a platform owner, they can charge a platform fee every time someone avails a loan.
Transaction Fee: Every withdrawal Transaction made on the platform will be charged a transaction fee.
Conversion Fee: In the event that you offer withdrawal in a Fiat currency, you can charge a conversion fee.
Features of the AAVE Clone Script:
Flash Loans – Flash loans are instant and are offered at a competitive interest rate than traditional banking systems They cut out most of the middle layer banking systems that tend to overcharge customers at various levels.
Completely Decentralized – Decentralized network ensures that there is no central authority controlling the prices. It’s all managed by smart contracts matching supply and demand at various stages.
Lending APY calculator – Lenders who supply liquidity to a currency pair will be shown the average APY they will get for the assets that they are locking in.
Liquidity Pools – Liquidity pools are crowdsourced collection of specific cryptocurrencies pooled together and held by the smart contract under the network. When One liquidity pools is paired with another liquidity pools it is called as a Currency Pair.
Modern, Simple Users Interface – Users on the platform will experience a real simple way to borrow or lend their cryptocurrency on the platform. Loaded with educational help text throughout the platform.
Admin Panel – A powerful admin panel to view the analytics, set important blockchain protocol related configurations, etc.