How to buy Aave (AAVE) in Australia

If you're just starting in cryptocurrency and intrigued by Aave's role in decentralised finance, this guide provides an actionable overview. This beginner's investing guide will explain what Aave is, how Aave works, its key benefits, various investment options, and the steps to get started with CMC Invest.

What is Aave?

Aave (AAVE) is the native token of the widely used decentralised finance (DeFi) protocol, a blockchain-based platform that lets people lend and borrow cryptocurrencies without banks or middlemen. Founded in 2017 by Stani Kulechov, who created Aave to put power in the hands of the community: instead of a company deciding everything, token holders could vote on important changes like new features, interest rate rules, or how protocol fees are used. 

The Aave protocol is a key infrastructure player in decentralised finance, with the AAVE token enabling community-driven upgrades and value accrual from protocol fees. As of January 2026, Aave had a market capitalisation of approximately $2.5 billion and ranked within the top 50 largest cryptocurrencies.

How does Aave work?

Aave allows cryptocurrencies to be lent and borrowed using blockchain technology. It runs on several existing blockchains, such as Ethereum, and uses automated smart contracts to manage loans without banks or other intermediaries. To borrow through Aave, users must provide collateral that is worth more than the amount they borrow, which helps manage risk, and interest rates change depending on how much demand there is for each cryptocurrency.

At its core, Aave is a decentralised system where people can lend their crypto to earn interest or borrow crypto by putting up extra assets as security. Everything happens automatically through smart contracts. No banks or paperwork needed.

Key functions

At a protocol level, Aave is designed to support several decentralised finance (DeFi) activities through automated smart contracts. These functions describe how the Aave protocol operates more broadly and do not reflect features available through CMC Invest’s platform.

• Crypto lending and interest: Digital assets can be pooled within the Aave protocol, allowing interest rates to adjust based on supply and demand.

• Collateralised borrowing: Assets can be borrowed by providing cryptocurrency collateral worth more than the amount borrowed.

• Flash loans: Very short-term, uncollateralised loans designed for technical use cases within a single blockchain transaction.

• Protocol governance: The AAVE token is associated with governance processes used to propose and vote on protocol changes.

• Stablecoin issuance (GHO): The protocol supports an over-collateralised stablecoin that operates within the Aave ecosystem.

When AAVE is purchased through CMC Invest, investors are investing in the AAVE token and can buy, hold and sell it within the CMC Invest platform. Due to CMC Invest’s closed-loop structure for cryptocurrencies, AAVE held on the platform cannot be transferred off-platform or used to access features of the Aave protocol, such as lending, borrowing, governance participation, or other on-chain activities.

Why invest in Aave?

When assessing Aave, market participants often consider a range of perceived strengths alongside limitations and risks associated with decentralised finance and cryptocurrency markets. Here are four key factors:

• Leading DeFi protocol: Consistently among the top 3 lending protocols by total value locked (TVL) of $50B at the time of writing, providing deep liquidity and market dominance. This leadership attracts users and developers, fostering network effects and long-term stability through multiple cycles.

• Real utility: The AAVE token provides governance rights and protocol fee benefits like staking rewards and discounts. This drives actual usage beyond speculation, tying value to protocol activity and revenue sharing. However, this does come with other utility risks.

• Revenue generation: Protocol earns fees from borrowing activity, creating value for token holders through buybacks and distributions. This cash flow model supports sustainable growth as DeFi adoption increases.

• Multi-chain presence: Diversifying across multiple blockchain networks reduces single-chain risk and enhances accessibility. This expansion lowers fees and broadens the user base, supporting scalability in a fragmented ecosystem.

Different ways to invest in Aave

There are several approaches to invest in Aave, each with pros and cons regarding ownership, fees, complexity, and tax implications. Here's a brief comparison of three key methods:

• Buy Aave (AAVE) directly: Buy and hold AAVE tokens on platforms like CMC Invest.  A flat brokerage fee of 0.9% applies to cryptocurrency transactions, and because cryptocurrencies are transacted in USD, an FX spread will also apply. 

• Buy an Aave DeFi index fund or ETF: Exchange-traded products that provide exposure to Aave are still an evolving area. At present, Aave-related ETFs are generally not broadly available to Australian investors and remain subject to regulatory approval, product structure and jurisdictional requirements. Investors should do their own research, as availability and access may change over time.

How to buy Aave with CMC Invest

If you’re an investor in Australia looking to buy cryptocurrency, CMC Invest offers access to AAVE and a selection of other coins through its integrated investing platform, providing an accessible way to start investing. Below is a step-by-step guide for new and existing CMC Invest customers on how to invest in AAVE:

1. Open a CMC Invest account

Get started by opening a CMC Invest account. You’ll get access to a wide range of investment products, including AAVE and other cryptocurrencies like Bitcoin, Ethereum, and Solana.

2. Opt-in for cryptocurrency investing

Once your account is set up, you’ll have access to over 45,000 stocks and ETFs as standard. If AAVE or other crypto interests you, you’ll need to opt in to access unregulated blockchain assets like AAVE.

3. Research AAVE

Before investing, you’ll want to give yourself a solid base of understanding of AAVE’s fundamentals and general market trends. CMC Invest has a range of educational resources and powerful charting tools to help investors make the best decisions for their portfolios.

4. Start investing in AAVE

Once you’ve opted in, you can start buying AAVE directly from the CMC Invest platform via the mobile app or desktop version.

Risks of investing in Aave

Like with any cryptocurrency, investing in Aave it comes with risks that can lead to partial or total loss of capital. Here are four key risks to consider carefully before proceeding:

• High volatility: DeFi tokens can experience extreme price fluctuations based on market sentiment and crypto trends; AAVE has experienced significant price swings, such as recent daily movements aligning with broader market corrections.

• Regulatory uncertainty: The regulatory treatment of decentralised finance (DeFi) protocols and related tokens continues to develop in Australia and internationally. Changes in laws or regulatory guidance may affect how these assets are classified, accessed or traded, which could influence market liquidity or valuations.

• Loss of capital and tax implications: Investors risk losing some or all of their investment due to the speculative nature of cryptocurrencies, with no guarantees of recovery.

Conclusion 

Aave plays a prominent role in decentralised finance by enabling crypto lending and borrowing through automated smart contracts, with the AAVE token linked to governance within the protocol. For Australian investors, gaining exposure to AAVE through platforms such as CMC Invest offers a straightforward way to participate in this part of the crypto market without engaging directly with on chain DeFi activity.

Understanding how Aave works, the different ways to invest, and the risks involved is an important step before committing capital. Cryptocurrency prices can be highly volatile and outcomes are uncertain, so any decision to invest should be based on careful consideration of your financial situation, objectives and risk tolerance.

If you are ready to explore cryptocurrency investing, you can sign up to CMC Invest to access AAVE and a range of other cryptocurrencies through its investing platform.

Disclaimer: CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information and education purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment, tax or other advice on which reliance should be placed and is warranted to be complete, accurate, or timely. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.   

Investing in cryptocurrencies carries significant risks and is not suitable for all investors. You may lose all your money you paid. Consequently, you should consider the information in light of your objectives, financial situation and needs and do your own research. It’s important for you to consider the relevant Digital Assets Terms of Service and other associated disclosure documents on the CMC Markets Invest website before you decide whether or not to acquire any of the Cryptocurrencies. Please also note that you are not currently able to send Cryptocurrencies to or from your trading account, or use Cryptocurrencies purchased on CMC Markets’ Platform to pay for goods or services.

The provision of cryptocurrency services and products will not be treated similarly to the provision of regulated financial services or products and you are not afforded the same client protection provisions offered by the Corporations Act 2001 (Cth) as you would trading regulated financial products or receiving regulated financial services. Cryptocurrencies are held with a sub-custodian.