Top Related Projects
The Compound On-Chain Protocol
🦄 🦄 🦄 Core smart contracts of Uniswap v3
Quick Overview
Aave Protocol is an open-source and non-custodial liquidity protocol for earning interest on deposits and borrowing assets. It enables users to deposit cryptocurrencies into liquidity pools to earn passive income, or borrow assets against their deposited collateral. The protocol is designed to be highly flexible and supports various assets and features like flash loans.
Pros
- Decentralized and non-custodial, enhancing security and user control
- Supports a wide range of cryptocurrencies and stablecoins
- Offers innovative features like flash loans and rate switching
- Governed by a decentralized autonomous organization (DAO)
Cons
- Complex smart contract interactions may be challenging for new users
- Susceptibility to smart contract vulnerabilities, despite audits
- Dependent on the overall health and liquidity of the crypto market
- Regulatory uncertainty in some jurisdictions
Code Examples
- Depositing assets into Aave:
function deposit(address asset, uint256 amount, address onBehalfOf, uint16 referralCode) external;
This function allows users to deposit assets into the Aave protocol.
- Borrowing assets from Aave:
function borrow(address asset, uint256 amount, uint256 interestRateMode, uint16 referralCode, address onBehalfOf) external;
This function enables users to borrow assets from the Aave protocol.
- Repaying a loan:
function repay(address asset, uint256 amount, uint256 rateMode, address onBehalfOf) external returns (uint256);
This function is used to repay borrowed assets to the Aave protocol.
Getting Started
To interact with the Aave Protocol:
- Install the required dependencies:
npm install @aave/protocol-v2
- Import the necessary contracts in your Solidity file:
import "@aave/protocol-v2/contracts/interfaces/ILendingPool.sol";
- Interact with the Aave Protocol using the imported interfaces:
ILendingPool lendingPool = ILendingPool(address_of_lending_pool);
lendingPool.deposit(asset_address, amount, user_address, 0);
For more detailed instructions and examples, refer to the official Aave documentation.
Competitor Comparisons
The Compound On-Chain Protocol
Pros of Compound Protocol
- Simpler architecture, making it easier to understand and audit
- Longer track record in the DeFi space, potentially offering more stability
- More established ecosystem with a wider range of integrations
Cons of Compound Protocol
- Less flexible interest rate model compared to Aave's multiple rate options
- Limited support for flash loans, a feature that Aave has popularized
- Slower to implement new features and upgrades
Code Comparison
Compound Protocol:
function borrow(uint borrowAmount) external returns (uint) {
require(borrowAmount > 0, "Cannot borrow 0");
uint accountBorrows = borrowBalanceStored(msg.sender);
uint accountBorrowsNew = accountBorrows + borrowAmount;
require(accountBorrowsNew <= borrowAllowed(msg.sender), "Borrow not allowed");
// Additional logic...
}
Aave Protocol:
function borrow(
address asset,
uint256 amount,
uint256 interestRateMode,
uint16 referralCode,
address onBehalfOf
) external override whenNotPaused {
DataTypes.ReserveData storage reserve = _reserves[asset];
_executeBorrow(reserve, amount, interestRateMode, referralCode, onBehalfOf, msg.sender);
}
The code snippets show that Aave's borrow function is more flexible, allowing for different interest rate modes and borrowing on behalf of others, while Compound's implementation is more straightforward.
🦄 🦄 🦄 Core smart contracts of Uniswap v3
Pros of v3-core
- More capital-efficient liquidity provision through concentrated liquidity
- Enhanced flexibility for liquidity providers with customizable price ranges
- Improved price oracle functionality with time-weighted average price (TWAP)
Cons of v3-core
- Higher complexity for liquidity providers and integration
- Potential for increased gas costs due to more complex operations
- Less suitable for passive liquidity provision compared to v2
Code Comparison
v3-core:
function swap(
address recipient,
bool zeroForOne,
int256 amountSpecified,
uint160 sqrtPriceLimitX96,
bytes calldata data
) external returns (int256 amount0, int256 amount1);
aave-protocol:
function borrow(
address asset,
uint256 amount,
uint256 interestRateMode,
uint16 referralCode,
address onBehalfOf
) external;
The v3-core swap function demonstrates its focus on efficient token exchanges, while aave-protocol's borrow function highlights its lending and borrowing capabilities. v3-core's function includes parameters for price limits and direction, showcasing its advanced trading features. In contrast, aave-protocol's function includes parameters for interest rate mode and referral code, emphasizing its focus on lending markets.
Convert 
designs to code with AI
Introducing Visual Copilot: A new AI model to turn Figma designs to high quality code using your components.
Try Visual CopilotREADME
Aave Protocol · 
Open source implementation of the Aave Decentralized Lending Pools protocol. Version 1.0
Documentation
It is possible to find documention to integrate the Aave Protocol on developers.aave.com
For a deep explanation of the Aave Protocol, read the White Paper
Source code
The source code included is the final production version of the protocol. Eventual changes (smart contracts updates, bug fixes, etc.) will be applied through subsequent merge requests.
Audits report
Bug bounty
The bug bounty program is live!
We want Aave protocol to be the best it can be, so weâre calling on our community to help us find any bugs or vulnerabilities.
More details about the bounty program and how to apply can be found here https://aave.com/bug-bounty.
Responsible disclosure
At Aave, we consider the security of our systems a top priority. But even putting top priority status and maximum effort, there is still possibility that vulnerabilities can exist.
In case you discover a vulnerability, we would like to know about it immediately so we can take steps to address it as quickly as possible.
If you discover a vulnerability, please do the following:
E-mail your findings toâ¯wecare@aave.com;
Do not take advantage of the vulnerability or problem you have discovered;
Do not reveal the problem to others until it has been resolved;
Do not use attacks on physical security, social engineering, distributed denial of service, spam or applications of third parties; and
Do provide sufficient information to reproduce the problem, so we will be able to resolve it as quickly as possible. Complex vulnerabilities may require further explanation so we might ask you for additional information.
We will promise the following:
We will respond to your report within 3 business days with our evaluation of the report and an expected resolution date;
If you have followed the instructions above, we will not take any legal action against you in regard to the report;
We will handle your report with strict confidentiality, and not pass on your personal details to third parties without your permission;
If you so wish we will keep you informed of the progress towards resolving the problem;
In the public information concerning the problem reported, we will give your name as the discoverer of the problem (unless you desire otherwise); and
As a token of our gratitude for your assistance, we offer a reward for every report of a security problem that was not yet known to us. The amount of the reward will be determined based on the severity of the leak, the quality of the report and any additional assistance you provide.
License
The Aave Protocol is under the AGPL v3 license
Top Related Projects
The Compound On-Chain Protocol
🦄 🦄 🦄 Core smart contracts of Uniswap v3
Convert designs to code with AI
Introducing Visual Copilot: A new AI model to turn Figma designs to high quality code using your components.
Try Visual Copilot