Part 5/9:
The platform allows users to lend and borrow cryptocurrencies by depositing them into liquidity pools. It introduced innovative financial products like flash loans—uncollateralized loans that must be repaid instantly—which have opened new arbitrage possibilities.
With the upcoming V4 launch, Aave aims to improve its liquidity management and further streamline user experience. The past performance of AAVE indicates that it could bounce back to its previous all-time high of around $670, potentially yielding a 2.5x gain if it manages to ascend towards the $1,000 mark in a bullish market.