Important Notice
Deposits and withdrawals are not currently available for this coin.
Aave DAI v1 (ADAI) is a tokenised version of DAI within the Aave protocol, a decentralised, open-source, and non-custodial liquidity protocol. It operates on the Ethereum blockchain and is designed to allow users to earn interest on their DAI deposits while contributing liquidity to lending pools. ADAI represents an interest-accruing deposit in the Aave ecosystem.
Aave DAI v1 functions by turning DAI deposits into aTokens, specifically ADAI, which accrue interest in real-time. The Aave protocol utilises smart contracts to manage the deposit and borrowing operations, governed by the AAVE token holders. The deposited DAI is added to a liquidity pool, and lenders receive ADAI tokens, reflecting their contribution to the pool, with interest determined by a dynamic interest rate model based on supply and demand.
Aave DAI v1 has several use cases, including:
Aave DAI v1 is part of the Aave protocol's evolution, which began in 2017 as ETHLend, founded by Stani Kulechov. ETHLend rebranded to Aave in 2018 with a vision for a transparent financial system. The first version of Aave, launched in 2019, introduced features like aTokens and flash loans. Key milestones include a governance transition in 2020 to become more decentralised, and significant upgrades with Aave v2 in December 2020. The protocol's expansion into other blockchains like Polygon and Avalanche marked its growth in the DeFi space, achieving substantial Total Value Locked (TVL).