An overview of several leading DeFi and CeFi crypto lending platforms and who offers the best crypto interest rates.
UPDATED December 5, 2023. Who offers the best crypto interest rates? With the growth of DeFi and CeFi applications, crypto lending, margin exchanges and stakeable cryptocurrencies in recent years, it can be difficult to figure out where the best crypto returns lie for your idle capital. Following our guide to crypto yield farming, this survey examines the major crypto lending platforms and examines the different interest rates they offer.
First, it is important to understand the difference between “crypto loans” and “crypto loans” in the context of this article. When you lend in the following scenarios, you are lending your assets to the listed platforms with the expectation that you will receive interest on your crypto assets. Your goal is to return your original amount including any interest earned. This article does not discuss cryptocurrency borrowing, where you would borrow assets (or in some cases fiat currencies) from a platform and would have to pay them back with additional interest. You can find the best lending rates for cryptocurrencies here.
The question of which crypto lending platform is the best is debatable – as each platform has its own approach and processes – but the annual interest rates paid are certainly a good starting point. All interest rates were recorded as of December 5, 2023 and are subject to change. A zero rate on a particular platform means that the coin is temporarily unavailable there. It doesn't mean 0% interest.
Best Crypto Interest Rates
Stablecoin rates
|
USDC |
DAI |
USDT |
USDP |
TUSD |
BUSD |
FEI |
GUSD |
||
|
12% |
12% |
12% |
0% |
12% |
12% |
– |
– |
|
|
6.44% |
6.16% |
– |
– |
– |
– |
– |
– |
|
|
14% |
14% |
16% |
14% |
14% |
– |
– |
– |
|
|
0% |
– |
6.4% |
– |
– |
– |
– |
– |
|
|
0% |
– |
0% |
– |
– |
– |
– |
– |
|
|
3.93% |
3.33% |
3.46% |
1.38% |
1.47% |
– |
– |
– |
|
|
8.5% |
– |
– |
– |
– |
– |
– |
– |
|
|
17.54% |
7.86% |
22.72% |
– |
– |
23.98% |
– |
– |
|
|
7.36% |
5.28% |
7.79% |
0% |
0% |
0% |
0% |
0% |
|
|
8.2% |
– |
8.2% |
– |
– |
– |
– |
– |
|
|
0% |
4.5% |
4.5% |
2% |
0% |
– |
– |
– |
|
|
5% |
– |
5% |
– |
– |
– |
– |
– |
|
Cryptocurrency rates
USDC |
DAI |
USDT |
USDP |
TUSD |
BUSD |
FEI |
GUSD |
||
|
|
12% |
12% |
12% |
0% |
12% |
12% |
– |
– |
|
|
|
6.44% |
6.16% |
– |
– |
– |
– |
– |
– |
|
|
|
14% |
14% |
16% |
14% |
14% |
– |
– |
– |
|
|
|
0% |
– |
6.4% |
– |
– |
– |
– |
– |
|
|
|
0% |
– |
0% |
– |
– |
– |
– |
– |
|
|
|
3.93% |
3.33% |
3.46% |
1.38% |
1.47% |
– |
– |
– |
|
|
|
8.5% |
– |
– |
– |
– |
– |
– |
– |
|
|
|
17.54% |
7.86% |
22.72% |
– |
– |
23.98% |
– |
– |
|
|
|
7.36% |
5.28% |
7.79% |
0% |
0% |
0% |
0% |
0% |
|
|
|
8.2% |
– |
8.2% |
– |
– |
– |
– |
– |
|
|
|
0% |
4.5% |
4.5% |
2% |
0% |
– |
– |
– |
|
|
|
5% |
– |
5% |
– |
– |
– |
– |
– |
|
An Introduction to Crypto Lending
The other side of lending is, of course, borrowing. If you are interested in taking out a loan (e.g. in USD), many of the providers mentioned above also offer this service. Find out about the current loan interest rates here.
Most major lending and borrowing protocols in both CeFi and DeFi require borrowers to lock an asset in order to take out a loan. These types of loans are called secured loans.
Collateralization is the obligation of a borrower to pledge a set of assets to enable a lender to recover its capital if the borrower defaults on loan payments. If a borrower continually fails to pay a loan obligation, the lender has the right to take possession of the pledged security in the event of a loan default.
Collateralized, or more specifically “overcollateralized loans,” are at the heart of efficiently functioning DeFi lending tokens. DeFi lending protocols enable open, permissionless and pseudo-anonymous financial services. There are no creditworthiness requirements for borrowers and generally no formal KYC or AML requirements.
To maintain a balance between open access and system stability, the value of the collateral that must be pledged for DeFi loans must exceed the value of the loans. For example, if a DeFi user wants to take out a $100 DAI loan directly on Makerdao, they will need to deposit at least $150 worth of Ethereum.
Borrowing through DeFi protocols can often be a precarious and time-consuming process that goes beyond simply repaying interest in installments.
The loan-to-value ratio (LTV) must be carefully monitored to ensure that the collateral requirement agreed upon before the loan is executed is met. Maintaining this LTV ratio becomes more difficult when borrowers deposit volatile assets like ETH as collateral. If the value of ETH in US dollars suddenly changes, loans can be liquidated very quickly and borrowers are not protected by existing mechanisms such as credit insurance.
For these reasons, BNC has chosen not to provide details on DeFi protocol lending rates due to the complexity of unique DeFi protocol protocols that go beyond interest payments.
Programmable Money: Tools that automatically find the best crypto interest rates for you
Nowadays, there are income optimization platforms like Yearn.finance. They leverage the features of the Ethereum blockchain to enable programmable money and make it easier for users to automatically find optimal interest rates. Before Yearn, users who wanted to maximize their returns had to manually move their stablecoins between lending protocols. A slow, labor-intensive process that Yearn wants to avoid.
The protocol works by creating pools for each deposited asset. When a user deposits their stablecoins into one of these pools, they receive yTokens, which are high-yield equivalents of the deposited coin. For example, if a user deposits DAI into the protocol, they will return yDAI.
Assets are automatically moved between lending platforms in the DeFi ecosystem such as Compound and Aave, where interest rates on deposited assets change dynamically. Every time a new user deposits assets into a pool on Yearn, the protocol checks for opportunities for higher returns and rebalances the entire pool if necessary. At any time, a user can destroy their yDAI and withdraw their initial deposits and accrued interest in the form of the original deposit assets.
The protocol has evolved to offer more complex solutions that efficiently maximize returns on user deposits. The yCRV liquidity pool built by Yearn on the Curve finance platform contains the following yTokens: yDAI, yUSDC, yUSDT, yTUSD and pays back a yCRV token representing the index. Users can deposit any of the four native stablecoins into the pool and earn interest back from yield-earning yCRV tokens. Depositors also receive trading fees from Curve for providing liquidity to other users of the platform.
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