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In a nutshell Aave is a decentralized finance (DeFi) lending protocol. According to DeFiLlama, it is the second-largest DeFi protocol in the world by total value locked (TVL). Aave maintains liquidity on its platform by requiring all loans, except short-term or flash loans, to be overcollateralized and have a fail-safe liquidity pool called a security module. AAVE's native tokens are used for governance and can be staked in the security module to earn rewards.
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