Hassan Maishera
On Friday, Aave Labs announced via X that Aave Labs achieved SOC 2 Type II attestation across the Trust Services Criteria of Security, Availability, and Confidentiality.
The audit confirms enterprise-grade development and operational standards across all software. SOC 2 is an audit framework developed by the AICPA that evaluates an organization's controls for security, system availability, and the handling of sensitive information. A Type II attestation assesses whether those controls operated effectively over a defined period of time, as opposed to a single point-in-time review.
Aave is a decentralized finance protocol that allows people to lend and borrow crypto. Lenders earn interest by depositing digital assets into specially created liquidity pools. Borrowers can then use their crypto as collateral to take out a flash loan using this liquidity.
Aave (which means “ghost” in Finnish) was originally known as ETHLend when it launched in November 2017, but the rebranding to Aave happened in September 2018. (This helps explain why this token’s ticker is so different from its name!)
AAVE provides holders with discounted fees on the platform, and it also serves as a governance token — giving owners a say in the future development of the protocol.
Aave protocol is a decentralized, open-source, and non-custodial money market protocol. Depositors earn interest by providing liquidity to lending pools, while borrowers can obtain overcollateralized loans by using the liquidity from these pools. AAVE is trading at $96.5 per token, up 7% in the last 24 hours.
The project allows people to borrow and lend in about 20 cryptocurrencies, meaning that users have a greater amount of choice. One of Aave’s flagship products is “flash loans,” which have been billed as the first uncollateralized loan option in the DeFi space. There’s a catch: they must be paid back within the same transaction.
