Aave Leads Lending Protocols by TVL With $16.36 Billion Locked

Aave ranked first among decentralized lending protocols by total value locked on Nov. 10, with $16.362 billion locked and $11.891 billion in active loans across its markets. Those figures measure separate parts of the protocol’s activity: the value held in its markets and the amount borrowers have taken out. Aave is a decentralized lending protocol, and its V3 markets use blockchain contracts to connect suppliers and borrowers through shared pools. A person who supplies an asset to a V3 pool receives an interest-bearing aToken tied to that asset. The interest comes from borrowing activity, and the return can change as pool utilization shifts. Borrowing rates also vary with utilization, or how much of a pool’s available assets are being borrowed. Borrowers draw funds from a pool against eligible collateral.

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