What Is the AAVE Token and What Does It Do?

[AIcash]

Aave is a decentralized finance protocol that allows users to lend and borrow crypto assets without intermediaries. The AAVE token sits at the center of this ecosystem, acting as the protocol’s governance and safety mechanism rather than a simple utility token.

AAVE holders can vote on protocol upgrades, risk parameters, and new asset listings through onchain governance. The token can also be staked in the Safety Module, where it helps secure the protocol in exchange for rewards, while carrying the risk of slashing if a shortfall event occurs.

[johnblockbuster]

staking with slashing risk is cool in theory but still kinda scary