UniSwap vs Aave: A comparative Analysis of UNI vs AAVE

Ethereum protocols have a way of solving the most sought after issues persisting in the crypto space. Back in November 2022, both UNI vs AAVE ranked 4th and 5th respectively, as per the Total Value Locked by Ethereum protocols! This article delves into the understanding of the tokens to help make them known to the crypto enthusiasts.

What is Uniswap?

Uniswap is one of the leading decentralized crypto exchanges, or popularly known as DEXs. The Uniswap environment consists of Uniswap Labs, Uniswap Protocol, Uniswap Interface, and Uniswap Governance. This popular decentralized exchange offers functions such as peer-to-peer trading of digital assets, by using smart contracts in order to function as an Automated Market Maker.

Fun Fact: The UNI platform is permissionless. This means that no intermediaries are involved in it, while the network carries out any transactions. The platform operates on the Ethereum blockchain, which has recently transited from Proof of Work to a Proof-of-Stake consensus mechanism. 

Users on Uniswap has the ability to create liquidity pools to offer liquidity for a particular digital asset and also swap them with a variety of digital assets. They can participate in the decentralized exchange in several ways, like creating new markets; swapping assets through existing markets, providing liquidity and earning rewards; and participating in Uniswap governance.

The platform is powered by its native token, UNI, which is an ERC-20 token. The users earn rewards in the form of UNI, and the UNI holders take part in the governance of the protocol.

Did You Know? UNI is among the top DeFi tokens by market capitalization. 

Unique Features of Uniswap (UNI):

• The Uniswap network is a boon to the liquidity profiles of crypto assets.
• The AMM feature of the Uniswap ecosystem also gives way to the users to create new markets for any token that are on the ERC-20 standard without the listing fees.
• Uniswap gains from the operational efficiencies that are associated with smart contracts and blockchain technology. This helps the users to benefit from near instantaneous settlement while they are provided with robust security assurances

Read more: Uniswap vs Avalanche

Latest Uniswap News:

• Uniswap has recently launched the Uniswap mobile wallet, that is available for users of the iOS!

1/ THIS IS NOT A DRILL 🔥🔥🔥

The Uniswap mobile wallet is out of Apple jail and now live in most countries 🎉✨

Download our self-custody, open-sourced app today! 👇https://t.co/yWxuw79xTY pic.twitter.com/QhK06icKBL

— Uniswap Labs 🦄 (@Uniswap) April 13, 2023

Uniswap (UNI) vs Aave (AAVE): A Comparative Analysis

What is Aave?

AAVE is a decentralized protocol; with the help of AAVE, users can lend and borrow crypto of their own at a specific interest rate without having to go through a centralized intermediary. The Aave network is one of the largest lenders of crypto and the AAVE token has a larger market cap than its rivals; which are Maker or Compound.

The main aim for Aave is to solve the most pressing issue of traditional lending services; as with all DeFi, the main motive of AAVE is to convert centralized financial services to equivalent decentralized. Previously in a standard lending case, the bank lends out the users funds and gets profited, and as a result the users never had access to these interest earnings. 

AAVE have solved this problem in their system. Anyone can lend out their own money( crypto ) without permission and trust other users; the interest earned by your assets is pain directly to your network wallet. 

Unique Features of Aave (AAVE):

• Open-source – generally open source is more secure because it has gone through different and intense peer reviews by the community. 
• Non-Custodial Protocol – AAVE never holds your currency (Crypto) directly , less chance to hack because there are no wallet system for users. 
• Control without ownership – it allows the borrower to gain exposure to different crypto without owning it.

Latest Aave News:

• The recent AIP proposal have presented Aave with the opportunity to onboard Aave-Chan Initiative or ACI, as a service provider for the Aave protocol. This proposal aims to secure the necessary resources in order to continue the ACI’s work.

This [AIP] is now live and presents the Aave community with the opportunity to onboard Aave-Chan Initiative (ACI) as a service provider.https://t.co/p6gSNHtFeD

— Aave (@AaveAave) April 14, 2023

• The AaveEth Hackathon is live with prizes upto $10k up for grabs!

こんにちは @ETHGlobal Tokyo! 🇯🇵@AaveGrants will have 3 main prizes for @GHOAave and @AaveAave with $10k up for grabs!

🥇 1st $5k
🥈 2nd $3k
🥉 3rd $2k

For those taking part in the hackathon here’s a 🧵 to get those creative chops going! 👻 pic.twitter.com/4iib3LRusl

— Aave (@AaveAave) April 12, 2023

Pros and Cons of Uniswap vs Aave

Pros

Cons

Uniswap Price Prediction 2023

Source: TradingView

• The UNI price today is running at $6.22, with a 24-hour trading volume of $102,513,866. The price has seen a drop in its price by about 0.82% in the last 24 hours. The market cap of Uniswap is standing at $3,577,225,916, as of April 17, 2023.
• The MA shows the UNI price to have a potential to go higher in the coming days, however the market behaviour shows the prices can go either ways.
• Given the current scenario of UNI, by the end of 2023, the prices are estimated to reach the $10 levels.

Aave Price Prediction 2023

Source: TradingView

• The AAVE price today is running at $81.75, with a 24-hour trading volume of $72,377,501. The price has seen a drop in its price by about 1.12% in the last 24 hours. The market cap of Aave is standing at $1,153,012,784, as of April 17, 2023.
• The symmetrical triangle shows that the AAVE value has the potential pattern to keep up the trend to break through its resistance while also touch the $85 levels soon.
• Given the continuity of this behaviour, AAVE can go upto a valuation of $95 by the end of 2023.

Read on: Aave Price Prediction

UNI vs AAVE: Which Is The Better Buy?

While the whole of crypto ecosystem is working towards evolving themselves further, AAVE has stayed slow with its upgrades, however, Uniswap’s recent mobile wallet launch has brought up the ‘simplifying finance’ into the picture for the 5th largest TVL token. As both the tokens work around the developments that are still in the pipeline, it is imperative to conduct one’s research to decide which project and its mission aligns itself with the individual.

For more updates on the crypto space, keep a tab on the Crypto News.

How to Invest in Uniswap and Aave 

Investing in crypto is super simple, safe, and secured with CoinDCX app. It does not matter whether you want to buy UNI or wish to trade AAVE price today, we have got you covered.

Here are the 3 simple steps to buy your first UNI or AAVE with CoinDCX.

1. Sign up on CoinDCX
2. Complete your KYC
3. Link your bank details
4. Buy Uniswap (UNI) or Buy Aave (AAVE)