Decentralized finance is a new technology that removes intermediaries from financial services. Traditionally, users need these intermediaries to enjoy financial services, but this is no longer compulsory. One of DeFi's key features is removing bank charges and other fees. When using a bank or any other financial institution, you must pay a fee. But for decentralized finance, you can enjoy lower price rates for similar services. Your assets are also more secure in a wallet than keeping it in a bank. Because of the complexity of wallets, bad actors will not access your digital assets unless you give them your seed phrase. Additionally, you can save a lot of time when you use DeFi. Banks may require a couple of days to give approvals or complete some transactions. Yet, this new system removes all the barriers to financial services by helping peers connect and transact.

Aave is a decentralized finance (DeFi) protocol that allows users to access loans or borrow cryptocurrencies to enjoy an attractive interest rate. This is done without intermediaries, so people skip all the time-wasting formalities present in the traditional financial system. Aave brings financial services to crypto enthusiasts and investors alike.

So, those who take out loans have to pay a specific interest rate; and users who borrow other people's cryptocurrencies will profit through the interest rate. It is safe to mention that Aave is an Ethereum-based DeFi protocol. Today, the Ethereum blockchain is one of the most extensive networks in the industry, attracting lots of protocols and projects.

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Besides being one of the most-sought after blockchains in the DeFi industry, many NFT projects are also based on this network. Typically, most projects on the Ethereum blockchain use the ERC-20 token standard. This token is common for issuing and creating smart contracts on the Ethereum network. The standard also makes them compatible with Metamask.

Aave brings clusivity and liberty to its community by operating as a DAO.

Decentralized Autonomous Organization(DAO): Almost every project in the digital asset space has this feature. To make a protocol truly decentralized, crypto enthusiasts prefer a decentralized autonomous organization. This particular kind of organization has its rules and guidelines written in codes, and community members make decisions on matters concerning the project's growth. This way, it gives power to everybody, typically those who hold native tokens. DAO is necessary because it creates a structure that does not need human managers. And because Aave operates as DAO, interested community members need to hold the native token—Aave, to govern. This may prevent centralization, thereby promoting inclusivity.

Aave offers financial services without intermediaries. While traditional financial institutions may require documents collaterals to give loans, Aave does the same work without including intermediaries. The protocol uses smart contracts to make this happen. Smart contracts are different from the usual contracts requiring a lawyer. These contracts are lines of code in the blockchain that automates an action when the requirements have been met.

This makes saving money, getting loans, or borrowing money straightforward. Smart contracts connect loan seekers to their peers while banks borrow you the money after getting your collateral. So, in this situation, you will get your loan from another user willing to give out the cryptocurrency for a specific interest rate over a while.

First things first, liquidity is crucial for a successful protocol. Lenders need to deposit their digital assets into a pool, making it accessible to people who need loans. It's also safe to mention that the Aave protocol has numerous digital assets, which users can borrow. Before borrowing, you need to provide collateral. There is a list of tokens that can be used as collateral.

You should know that your collateral has to be greater than your loan. If the value drops below the required ratio, this may lead to your asset's liquidation. While DeFi protocols face different challenges, you can still get loans without much problem. This makes financial services easier to access. And since Aave is decentralized, there is no central body controlling it.

It depends on what you want. Aave creates an excellent opportunity to access loans. However, because cryptocurrencies are volatile, collaterals may drop in value, causing liquidation. Still, it's a perfect opportunity for arbitrage trading. You can quickly benefit from slight price changes and pay off your loans before getting liquidated.

It is important to talk about Metamask before explaining how to connect it to your Aave app. Metamask is arguably one of the most popular wallets in the cryptocurrency industry. This plugin interacts with the Ethereum blockchain, making it possible to use decentralized applications (DApps). You can store any ERC token standard with this wallet and transfer it to other wallets.

Additionally, you can connect your Metamask wallet to Ethereum-based decentralized applications. DApps are applications that run on a blockchain, typically Ethereum. While other blockchains support applications, many developers still opt for the Ethereum network. Decentralized applications are essentially unique kinds of features on a blockchain. Wallets make it easy to use digital assets in DeFi, gaming, and gambling platforms.

You need to set up your wallet before you connect it to Aave. The first step to take is to download and install the extension. After the installation, you can click on "get started" to create your wallet. Then, you move on to creating your wallet. Now, you may need to pick a password to secure your account. You should always pick a unique word and also add special characters.

Afterward, you might have read the terms and created your password. Besides your password, you will be given a backup phrase. Ensure you write this somewhere secure and safe. You can now confirm your phrase by inputting it. Now, you can ensure the phrase and move on to connecting your wallet to your Aave application.

You need to go to the Aave application on your browser. You can do this by going to Aave.com; after this, click on "enter the app." You may see numerous information about the protocol when you get to the application. Then, click on the bar on the right-hand side of the application.

After entering the platform, you will click the enter tab to enter the app. At the top right corner, you will find some options, such as governance, swap, and others. Click on "Connect to a wallet" at the upper part. If you have your Metamask connected to your browser, you can easily connect it through "browser wallet." However, scroll down and click on "wallet connect."

Browser wallet will show you a couple of wallets on your browser that you can connect to Aave. Here, you will find your Metamask wallet. Now, you can connect the two and check the application to confirm. Now, you will find your wallet connected to Aave because it will show your address.

Following the steps listed above will help you ensure that your Metamask is safely connected to your Aave. With this, you should be able to carry out your transactions. However, you should be mindful of your seed phrases and keep them safe. This is because once they are lost, you cannot gain access to the account forever.

MetaMask is a well-known and popular crypto wallet that supports Ethereum-based tokens (tokens according to the ERC-20 standard). The wallet is software-based but is also available as a mobile app or as an extension for Google Chrome and Firefox. It can not only act as a regular wallet but can also act with smart contracts and decentralized applications of the Ethereum network. 

This wallet existed since 2016 and comes from the company ConsenSys. MetaMask has been available as a mobile app since September 2020 and shortly thereafter in October, the wallet passed a milestone of 1 million monthly users. In August 2021 there were already 10 million active monthly users for MetaMask. MetaMask uses JavaScript as the programming language. The logo of the wallet represents the famous fox head.

MetaMask is a so-called “hot wallet”. It can be used with any internet-connected device. This makes it less secure than a cold wallet such as Ledger, but a single individual user can very well use it for short- to medium-term cryptocurrency deposits. 

The Binance Chain is the blockchain of the world's largest crypto exchange, Binance. BSC was launched in 2019 and has been one of the most successful blockchains on the crypto market ever since. It is tasked with simplifying decentralized trading. With the chain, Binance has built its own decentralized exchange (DEX). The famous token of the Binance chain is the BNB token, which is the 3rd cryptocurrency by market capitalization.

The Binance Smart Chain (BSC) runs parallel to the Binance Chain and is intended to increase the scalability of the Binance network and introduce smart contracts. The BSC has the option of entering into smart contracts via the Ethereum Virtual Machine (EVM). The goal is to keep the transaction throughput of the Binance Chain stable, while at the same time offering smart contracts in the Binance ecosystem.

The Binance Smart Chain is a layer 2 scaling solution. The BSC can also act independently of the Binance Chain should it go offline. However, both blockchains have strong similarities in terms of design. 

Easily buy BNB Crypto on  Binance  and  Bitfinex  !

If you now want to connect the Binance Smart Chain to MetaMask, this is relatively easy to do. MetaMask is kept extremely minimalist so that the application is quick and easy to use. We will now show you how to set up the MetaMask for yourself and then connect the Binance Smart Chain. You can find even more specific instructions on how to set up the MetaMask in your own browser here .

The easiest way to set up MetaMask is to use the wallet as a browser extension for your own web browser. The MetaMask Browser Plugin is specially designed for Google Chrome. However, it can also be installed on the following browsers:

• Mozilla Firefox
• Brave
• Microsoft Edge

First, you download the plugin from the MetaMask website. From there, you click on the “Download” button and you can then select the plugin for Chrome, iOS, and Android.

You must first create a new wallet. MetaMask is primarily an Ethereum wallet. We have described the process of creating MetaMask as an Ethereum wallet in more detail in this article. 

If you need help submitting, follow the instructions in that article. However, the following steps are relatively self-explanatory:

• Select "Add new wallet"
• Set a password
• Save the backup key

In order to use MetaMask with the Binance Smart Chain, you must first connect the wallet to the BSC. MetaMask is primarily an Ethereum wallet and you should not use it in its “original state” if you want to connect to Binance Smart Chain dApps. However, the connection between MetaMask and the Binance Smart Chain is relatively easy to establish.

To do this, go to the account symbol in the top right corner and you will see the MetaMask menu.

Then click on Settings. Scroll down and click Networks.

Then you go to add network.

A new window will then open in your browser. In this window, you have to enter the details of the Binance Smart Chain mainnet. Binance provides this data and they are as follows:

• Network Name:  Smart Chain
• Neue RPC-URL: https://bsc-dataseed.binance.org/
• ChainID: 56
• Currency Symbol: BNB
• Block-Explorer: https://bscscan.com

After that, click on Save.

You have now added the Binance Smart Chain (BSC) to MetaMask. In your MetaMask menu, you can now switch between each blockchains in the top bar.

After that, go to Binance and send your coins from Binance to the copied address from your MetaMask account.

The process of buying cryptocurrencies directly works the same way as in the “original state” when MetaMask is connected to the Ethereum network. However, there is only one payment provider here, Transak.

Go to “Buy” and you will be presented with the “Buy BNB with Transak” feature. Continue here to buy with Transak BNB!

To do this, go to the “Send” function and enter your Binance address in the following field.

Go to the “Swap” function to swap BNB! Here you enter the amount of BNB to swap and select a token as a partner. Afterward, you can set Slippage Tolerance. This is a percentage of a price change that must be exceeded for your swap not to execute. At the end click on “Review Swap”.

You can also purchase BNB for your MetaMask wallet on crypto exchanges like  Coinbase  and  Kraken  .