AAVE

Aave is a decentralized finance (DeFi) protocol that functions as a non-custodial liquidity market, where participants can act as depositors or borrowers. The AAVE token serves as the native governance and utility asset within this ecosystem. Unlike traditional financial instruments, Aave does not represent equity in a corporation or a claim on physical assets held in a vault. Instead, it functions as a governance mechanism that allows holders to vote on protocol upgrades and parameter changes, while also acting as a backstop for the protocol's safety module.