Aave BAT ABAT

Aave BAT refers to the BAT (Basic Attention Token) asset on the Aave protocol. BAT is a cryptocurrency that is used within the Brave browser ecosystem for advertising and rewarding users. On the Aave protocol, BAT can be supplied as collateral and used to borrow other assets or earn yield through lending. When BAT is supplied to the Aave market, aTokens are minted, representing the amount of BAT supplied and the yield earned on it. These aTokens can be stored, transferred, or traded, and the yield collected is distributed to aToken holders.

Aave BAT is unique compared to other cryptocurrencies because it is an aToken. aTokens are tokens minted and burnt upon supply and withdrawal of assets to an Aave market. They represent the amount of crypto assets supplied and the yield earned on those assets. The value of aTokens is pegged to the value of the corresponding supplied asset at a 1:1 ratio. This means that holding Aave BAT allows users to earn yield on their BAT holdings, as the yield collected by the aTokens' reserves is distributed directly to aToken holders. Additionally, aTokens can be safely stored, transferred, or traded.