Does Aave offer any rewards or incentives for users?
Yes, Aave offers rewards and incentives for users.
Aave's rewards program is called Aave Rewards. It is designed to incentivize users to use the platform and increase liquidity in the protocol. Aave Rewards are distributed to users who deposit their assets into the Aave protocol and earn interest on their deposits.
The rewards are distributed in the form of aTokens, which are ERC-20 tokens that represent a user’s share of the total supply of aTokens. The more aTokens a user holds, the more rewards they will receive from Aave. The rewards come from two sources: (1) fees generated by borrowers on the platform, and (2) inflationary issuance of aTokens.
As borrowers take out loans on the platform, they pay fees which are then distributed to depositors as rewards in proportion to their share of total deposits. Additionally, new aTokens are issued each month through an inflationary mechanism which is also distributed to depositors as rewards in proportion to their share of total deposits. In addition to these rewards, Aave also offers incentives for users who refer new users to the platform.
Referrers can earn up to 25% of all fees generated by referred users for up to one year after they join Aave.
