Aave (AAVE): D-Score 32/100 — Centralized Leaning BlockIndex D-Score: 32/100 (Centralized Leaning). Aave (AAVE) is a Layer 2 cryptocurrency using PoS consensus. Aave: Leading open-source DeFi lending protocol with ERC-20 governance token, multichain deployments, flash loans and GHO stablecoin. Source: https://blockindex.ai/coin/aave · Data by BlockIndex.AI · Updated 2026-06-19 D-Score breakdown (0-100, higher means more decentralized) Component: Score: Overall D-Score: 32: Node distribution: 0: Initial distribution: 0: Governance: 20: Age and history: 12: Autonomy: 0: Key facts - Layer: Layer 2 - Consensus: PoS (N/A) - Launch: ICO (2017) - Founder: Stani Kulechov - VC funded: Yes - Max supply: N/A - Circulating: 15,409,473 Market data (as of 2026-06-19) - Price: $73.12 - Market cap: $1.13B - 24h volume: $151.33M - 24h change: -0.23% · 7d change: +14.58% About Aave (AAVE) is a leading open-source, non-custodial decentralized finance (DeFi) liquidity protocol that began life as ETHLend in November 2017 and rebranded as Aave in September 2018. Founded by Stani Kulechov, the project raised initial funds via an ICO in November 2017 and later underwent a token migration (LEND → AAVE) in 2020 that concentrated the supply to a 16,000,000 AAVE cap. Over time Aave has evolved from a single-chain Ethereum lending product into a multichain protocol with deployments across Ethereum, Polygon, Avalanche, Arbitrum, Optimism, Base and other EVM-compatible networks. The on-chain AAVE token is an ERC-20 governance and utility asset used for protocol governance, staking in the Safety Module (stkAAVE), fee discounts, and participation in buyback and treasury management programs; the Aave ecosystem has also introduced the GHO stablecoin and institutional offerings such as Aave Arc and Aave Horizon. Technically, Aave’s architecture is defined by smart-contract-based markets and composable primitives rather than a standalone blockchain: liquidity pools, aTokens (interest-bearing tokens), flash loans (atomic uncollateralized loans repaid within one transaction), AMM market integrations, and an evolving risk-parameter framework underpin multi-version releases (V1 → V2 → V3 and iterative v3.x releases). The protocol emphasizes modular, auditable contracts and maintains an active GitHub presence; governance changes are proposed and executed through Aave Governance, which uses AIP proposals, Snapshot temperature checks, on-chain voting and a Guardian multi-sig to pause or veto markets when required. Cross-chain functionality (e.g., cross-chain GHO through Chainlink CCIP) and audited governance messaging are central to Aave’s multi-network expansion. In practice Aave serves retail and institutional users by providing overcollateralized lending, borrowing and liquidity provision across many assets and chains. The protocol’s primary use cases include interest-bearing supply positions, isolated borrowing markets, AMM-enabled liquidity, flash loans for arbitrage/MEV strategies, and stablecoin issuance (GHO). Institutional initiatives (Aave Arc, Horizon) and integrations (custodial and exchange partnerships) broaden access to regulated entities while maintaining the DAO-controlled policy levers that govern protocol-level parameters. Aave’s large Total Value Locked (TVL), diversified revenue streams, and developer integrations (trading, liquidation engines, collateral swaps) make it a foundational DeFi primitive for composability and capital efficiency. Tokenomics and governance design reflect deliberate supply management and community stewardship: a 2020 token swap reduced legacy supply to a 16M AAVE cap with reserves held for the protocol, a substantial circulating supply (~15.3M) and explicit staking/buyback mechanisms supported by the Safety Module and treasury operations. Governance is handled on-chain by AAVE token holders and delegates through Aave Governance V2 and V3 frameworks, with a mixed commercial/governance structure where Aave Labs operates product and front-end development while the Aave DAO controls protocol parameters and treasury decisions. The protocol has navigated peripheral security incidents (minor periphery exploits) and regulatory scrutiny (a U.S. SEC investigation that concluded without recommended enforcement action in December 2025). Looking forward, roadmap priorities emphasize Aave V4 feature research, a novel liquidation engine, native Bitcoin-backed lending pilots, expansion of GHO, and continued multichain standardization to manage risk across deployments. Links - Website: https://aave.com/ - Whitepaper: https://aave.com/docs - GitHub: https://github.com/aave --- About the D-Score: BlockIndex.AI rates decentralization from 0 to 100 across node distribution, initial distribution, governance, age and history, and autonomy. Methodology: https://blockindex.ai/dscore