Aave saw a recovery across the cryptocurrency market in November.
The Ethereum-based lending platform saw a 34 per cent price increase in the value of transactions last month.
It reported that transaction volumes are growing towards September’s record with almost $3m (£2.7m) in deposits and liquidity close to its peak level.
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The platform said this led to $1.6m of monthly income for depositors from borrow rates and flash loans.
Flash loans are uncollateralised loans that allow the borrowing of an asset, as long as the borrowed amount and a fee is returned before the end of the transaction.
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In November, these loans brought in $300m for Aave to reach a cumulative volume of $1bn on the platform.
“Flash loans have become a key financial primitive of the decentralised finance ecosystem,” Aave said in a blog on its website.
Last month, Aave said that it saw a correction across assets in the cryptocurrency market in September.
The lender said this is common for the cryptocurrency market and the asset remains attractive.
The platform said through this volatile market it has maintained its attractiveness for crypto assets holders who have deposited $3.5bn.
In August, Aave told Peer2Peer Finance News that the Covid-19 crisis may lead to more people turning to crypto lending.
Then in July, Aave launched an ‘undercollateralised lending’ service which allows users to take out loans without having to deposit collateral.
Instead, depositors can delegate their credit lines to other users, generating a legal agreement which allows lending to take place.