Aave’s focus on capital efficiency through E-Mode and Isolation Mode significantly enhances its investment value by increasing TVL and user stickiness. E-Mode allows borrowers to maximize leverage on correlated assets like stablecoins, enabling efficient yield farming and attracting sophisticated users, which has driven Aave’s TVL to $36.98 billion. Isolation Mode mitigates risks by limiting volatile asset borrowing, fostering trust and encouraging long-term user participation. The GHO stablecoin, integrated with Aave V3, enhances user stickiness by offering flexible borrowing options, with its supply growing 5x to 210M in a year. Aave’s $8.5M monthly revenue against $5.9M in incentives reflects strong financial health, supporting TVL growth. However, competition and regulatory scrutiny could pressure TVL. Aave’s capital-efficient innovations make it a high-potential investment for DeFi enthusiasts.