Posted on May 28, 2021

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eToro Cryptocurrency Trading | Compound and Aave

Compound (COMP)

Compound is a decentralized finance loan protocol and service called DEFI which is built on the Ethereum blockchain using smart contracts. Basically it's like a Bank where people store their Cryptocurrency and earn interest as the bank lends the Cryptocurrency to borrowers at a specific interest rate depending on the supply and demand of the locked crypto assets.

On eToro you invest in the Comp Crypto which is used to run the service, for voting rights and given to leaders as an extra incentive, all in all, you will benefit from the rising popularity of compound lending services.

Aave (AAVE):

Aave offers a very similar service as Compound but also offers Flash Crypto loans that require no collateral. Aave offers lenders a choice of three different interest rates - Fixed, Variable & Floating which can be switched at any time. Currently, Aava lets users can lend 24 different cryptocurrencies.

Aave is the Crypto that you will invest in on eToro and is used to govern the future decisions of Aave, also used to earn staking rewards, and borrowers who use Aave as collateral get discounts on fees for using the platform. Aave which has a maximum of 16 million coins destroy.

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