The Complete Guide to DeFi Lending in 2026
DeFi lending lets you earn yield on crypto or access liquidity without selling – no banks, no credit checks, no middlemen. With $80B+ locked across lending protocols, DeFi lending has proven product-market fit – these protocols handle billions daily without banks, and rates often outpace traditional savings accounts.
This guide covers how lending works, which protocols to use, yield strategies from simple to advanced, and how to manage risk. Superlend aggregates 350+ money markets across 11+ chains, making it easy to compare rates and execute from one dashboard.
What is DeFi Lending?
DeFi lending – short for decentralized finance lending – is a system that allows people to lend and borrow cryptocurrency without traditional intermediaries like banks. Instead of a bank managing your deposits and deciding who gets loans, DeFi lending uses smart contracts on blockchain networks to automate the entire process.
Think of it like a peer-to-peer lending marketplace, but one that runs 24/7, requires no credit checks, and lets anyone participate from anywhere in the world with an internet connection.
How Smart Contracts Make It Possible
At the core of DeFi lending are smart contracts – self-executing programs that live on the blockchain. When you deposit crypto into a lending protocol, you're sending it to a smart contract that:
- Records your deposit on the blockchain
- Pools your funds with other lenders
- Makes funds available for borrowers
- Calculates and distributes interest automatically
- Enforces repayment rules through collateralization
These smart contracts are open-source, meaning anyone can verify exactly how they work. There's no hidden fine print or discretionary decisions – the rules are transparent and execute exactly as written.
Liquidity Pools: The Engine of DeFi Lending
Rather than matching individual lenders with individual borrowers (like traditional peer-to-peer lending), most DeFi protocols use liquidity pools. Here's how they work:
- Lenders deposit their assets into a shared pool
- Borrowers draw from that pool, posting collateral
- Interest rates adjust automatically based on supply and demand
- Lenders earn a share of the interest proportional to their contribution
This pooled approach means you don't need to wait for someone to specifically want to borrow your funds. As long as there's demand in the pool, your deposits earn interest immediately.
The Role of Collateral
Unlike traditional loans where your credit score determines borrowing power, DeFi loans are overcollateralized. This means borrowers must deposit more value than they borrow – typically 125-150% of the loan amount.
For example, to borrow $1,000 worth of USDC, you might need to deposit $1,500 worth of ETH as collateral. If the value of your collateral drops below a certain threshold, the protocol automatically liquidates (sells) enough to repay the loan and protect lenders.
This overcollateralization is why DeFi lending works without credit checks – the collateral itself guarantees repayment.
How DeFi Lending Works
Let's break down the mechanics of DeFi lending step by step, so you understand exactly what happens when you supply or borrow assets.
The Supply Side: How Lending Works
When you want to earn yield by lending your crypto, here's the process:
┌─────────────────────────────────────────────────────────────────┐
│ DeFi LENDING FLOW │
├─────────────────────────────────────────────────────────────────┤
│ │
│ YOU (Lender) │
│ │ │
│ ▼ │
│ ┌──────────────┐ │
│ │ Connect │ Your wallet connects to the │
│ │ Wallet │ lending protocol's interface │
│ └──────┬───────┘ │
│ │ │
│ ▼ │
│ ┌──────────────┐ │
│ │ Approve & │ You authorize the smart contract │
│ │ Deposit │ to accept your tokens │
│ └──────┬───────┘ │
│ │ │
│ ▼ │
│ ┌──────────────┐ │
│ │ Receive │ You get tokens representing │
│ │ Receipt │ your deposit (aTokens, cTokens) │
│ │ Tokens │ │
│ └──────┬───────┘ │
│ │ │
│ ▼ │
│ ┌──────────────┐ │
│ │ Earn │ Interest accrues automatically │
│ │ Interest │ to your position │
│ └──────────────┘ │
│ │
└─────────────────────────────────────────────────────────────────┘Step 1: Connect Your Wallet
You connect a Web3 wallet (like MetaMask, Coinbase Wallet, or Rabby) to the lending protocol's website. This is how you interact with the smart contracts.
Step 2: Approve the Token
Before depositing, you approve the smart contract to spend your tokens. This is a one-time transaction per token.
Step 3: Deposit Your Assets
You specify how much to deposit and confirm the transaction. Your tokens move from your wallet to the protocol's liquidity pool.
Step 4: Receive Receipt Tokens
Most protocols give you "receipt tokens" representing your deposit. Aave gives you aTokens, Compound gives you cTokens. These receipt tokens automatically increase in value as interest accrues.
Step 5: Earn Interest
Your deposited funds start earning interest immediately. The rate varies based on borrowing demand, but you can withdraw anytime (as long as the pool has liquidity).
The Borrow Side: How Borrowing Works
Borrowing in DeFi requires providing collateral first. Here's the process:
┌─────────────────────────────────────────────────────────────────┐
│ DeFi BORROWING FLOW │
├─────────────────────────────────────────────────────────────────┤
│ │
│ YOU (Borrower) │
│ │ │
│ ▼ │
│ ┌──────────────┐ │
│ │ Deposit │ Provide collateral worth more │
│ │ Collateral │ than you want to borrow │
│ └──────┬───────┘ │
│ │ │
│ ▼ │
│ ┌──────────────┐ │
│ │ Borrow │ Take a loan up to your │
│ │ Assets │ collateral limit (LTV) │
│ └──────┬───────┘ │
│ │ │
│ ▼ │
│ ┌──────────────┐ │
│ │ Monitor │ Watch your health factor │
│ │ Position │ to avoid liquidation │
│ └──────┬───────┘ │
│ │ │
│ ▼ │
│ ┌──────────────┐ │
│ │ Repay │ Return borrowed amount │
│ │ Loan │ plus interest to reclaim collateral │
│ └──────────────┘ │
│ │
└─────────────────────────────────────────────────────────────────┘Step 1: Deposit Collateral
You deposit assets to use as collateral. Different assets have different loan-to-value (LTV) ratios – ETH might let you borrow up to 80% of its value, while riskier assets might only allow 50%.
Step 2: Borrow Assets
You can borrow any asset the protocol supports, up to your collateral limit. Want to borrow USDC against your ETH? Or borrow ETH against your stablecoins? It's your choice.
Step 3: Monitor Your Position
Your "health factor" indicates how safe your position is. If the value of your collateral drops (or your debt grows from interest), your health factor decreases. If it falls below 1, you risk liquidation.
Step 4: Repay When Ready
DeFi loans have no fixed term. You can repay anytime – in an hour, a month, or a year. You pay back the borrowed amount plus accrued interest to reclaim your collateral.
Understanding Health Factor and Liquidation
The health factor is a critical concept for borrowers. A health factor above 2.0 is considered safe and requires no action. Between 1.5 and 2.0, your position is moderate risk and should be monitored closely. Between 1.0 and 1.5, you are at risk and should consider adding collateral or repaying some debt. Below 1.0, the protocol will liquidate your position by selling collateral to repay your debt.
When liquidation occurs, the protocol sells enough of your collateral to bring your position back to safety. You typically lose a liquidation penalty (5-15%) on top of having your collateral sold.
Top DeFi Lending Protocols
The DeFi lending landscape in 2026 features several established protocols, each with unique characteristics. Here's an overview of the major players:
Aave
Total Value Locked: $25B+ Chains: Ethereum, Polygon, Arbitrum, Optimism, Base, Avalanche, and more
Aave is the largest DeFi lending protocol by TVL. Originally launched as ETHLend in 2017, it pioneered many features that are now standard across the industry.
Key Features:
- Flash loans: Borrow without collateral if repaid in the same transaction
- Isolation mode: Safely list newer assets with limited exposure
- E-mode: Higher borrowing power when collateral and debt are correlated
- GHO stablecoin: Aave's native decentralized stablecoin
Best for: Users who want the most established protocol with the deepest liquidity and widest chain support.
Compound
Total Value Locked: $5B+ Chains: Ethereum, Base, Arbitrum, Polygon
Compound is one of DeFi's original lending protocols and helped establish the pooled lending model that most protocols now use. Compound III (the latest version) introduced a more capital-efficient design.
Key Features:
- Single-asset comet markets: Each market focuses on one borrowable asset
- Efficient liquidations: Better pricing for liquidated positions
- COMP rewards: Governance token incentives for users
Best for: Users seeking a battle-tested protocol with a simpler, more focused design.
Morpho
Total Value Locked: $8B+ Chains: Ethereum, Base
Morpho started as an optimization layer on top of Aave and Compound, but has evolved into a powerful independent protocol. Morpho Blue introduced a permissionless, modular approach to lending.
Key Features:
- Modular design: Anyone can create customized lending markets
- MetaMorpho vaults: Curated vaults that optimize across markets
- No governance risk: Core protocol is immutable
- Higher efficiency: Often better rates than competitors
Best for: Users who want cutting-edge efficiency or access to curated vault strategies.
Euler
Total Value Locked: $1B+ Chains: Ethereum, Arbitrum, Base
Euler Finance is a modular lending protocol that learned from earlier designs to offer advanced risk management and flexibility.
Key Features:
- Synthetic assets: Create new assets within the protocol
- Reactive interest rates: Rates that adapt smoothly to market conditions
- Sub-accounts: Manage multiple positions with isolation
- EVC (Ethereum Vault Connector): Connect vaults across protocols
Best for: Power users who want advanced features and sophisticated risk management.
Fluid
Total Value Locked: $2B+ Chains: Ethereum, Arbitrum
Fluid (formerly Instadapp Lite) offers a unique approach where borrowing and lending are deeply integrated with DEX liquidity.
Key Features:
- Liquidity layer: Lending positions double as DEX liquidity
- Smart collateral: Your collateral earns trading fees
- Efficient capital: Higher yields through dual utility
- Smart debt: Borrowers benefit from trading activity
Best for: Users who want maximum capital efficiency by earning both lending interest and trading fees.
Protocol Comparison at a Glance
Each protocol has its own strengths. Aave (established 2020) excels at major assets like ETH and USDC with the deepest liquidity across the most chains. Compound (established 2018) focuses on blue-chip assets with simplicity and a strong track record. Morpho (established 2022) offers permissionless markets with variable rate optimization. Euler (established 2021) provides advanced risk management for long-tail assets. Fluid (established 2023) maximizes capital efficiency through integrated DEX liquidity. You can compare current rates across all these protocols on Superlend's Discover page.
Types of Assets to Lend
The assets you choose to lend significantly impact both your returns and risk exposure. Let's explore the main categories:
Stablecoins: USDC, USDT, and DAI
Stablecoins are the most popular assets for DeFi lending, and for good reason. They maintain a value pegged to the US dollar, eliminating price volatility from your lending returns.
Why lend stablecoins:
- Predictable returns in dollar terms
- High demand from borrowers (for leverage, arbitrage, payments)
- No worry about your principal losing value
- Often the highest utilization rates
Popular stablecoins for lending:
The most common stablecoins each have different risk profiles. USDC is backed by cash and treasuries with relatively lower risk. USDT has mixed reserves with medium risk. DAI is crypto-collateralized with medium risk. FRAX uses a hybrid algorithmic and collateral model with medium risk. For current stablecoin lending rates across all protocols, check Superlend's Discover page and filter by stablecoins.
Consider: While stablecoins reduce price risk, they don't eliminate it entirely. Regulatory actions, depegging events, or issuer problems can affect stablecoin value. Diversifying across different stablecoins can help manage this risk.
ETH and Liquid Staking Tokens
Lending ETH and its liquid staking derivatives (like stETH, rETH, or cbETH) lets you earn on top of potential price appreciation.
Why lend ETH:
- Maintain exposure to ETH price movements
- Add lending yield on top of staking rewards (for LSTs)
- Generally stable demand from shorts and leverage traders
Liquid Staking Tokens (LSTs):
These tokens represent staked ETH and continue earning staking rewards. When you lend them, you earn:
- Staking rewards (currently 3-4% APY)
- Lending interest (variable)
Risk consideration: Lending ETH means your principal can decrease in dollar terms if ETH's price drops. However, you're not at risk of liquidation since you're the lender, not the borrower. For current rates and strategies, see our ETH lending rates guide.
WBTC and Bitcoin Derivatives
Wrapped Bitcoin (WBTC) and other BTC derivatives let Bitcoin holders participate in DeFi lending.
Why lend BTC:
- Earn yield on Bitcoin holdings
- Maintain BTC exposure
- Lower volatility than altcoins
Options for BTC lending:
- WBTC – The most liquid wrapped Bitcoin
- tBTC – Decentralized Bitcoin wrapping
- cbBTC – Coinbase's wrapped Bitcoin
Note: Wrapped Bitcoin introduces bridge and custodial risk that native Bitcoin doesn't have. Consider whether the yield justifies these additional risk factors. Learn more in our WBTC lending guide.
Long-Tail Assets
Beyond the majors, many protocols support lending of smaller-cap tokens. These can offer higher yields but come with increased risks.
Potential benefits:
- Higher APYs to attract lenders
- Participation in newer ecosystems
- Governance token exposure
Risks to consider:
- Lower liquidity (harder to withdraw in stress)
- Higher volatility
- Potential for exploits targeting thin markets
- Less protocol attention/support
Best practice: Only lend long-tail assets you're comfortable holding anyway, and size positions appropriately for the risk level.
Understanding Lending Rates
One of the most common questions in DeFi lending is "What rate will I earn?" The answer depends on several factors, and understanding them helps you make better decisions.
APY vs APR: What's the Difference?
These two terms are often confused but represent meaningfully different returns:
APR (Annual Percentage Rate):
- Simple interest calculation
- Does not account for compounding
- Example: 10% APR on $1,000 = $100/year
APY (Annual Percentage Yield):
- Includes the effect of compounding
- Represents actual returns with reinvestment
- Example: 10% APY might equal 9.5% APR compounded monthly
In DeFi, most protocols quote APY because interest compounds continuously (or at least with every block). An advertised 10% APY means if you leave your funds for a year without withdrawing, you'll earn 10% – including the compounding effect.
Quick conversion:
- APY is always higher than APR (when positive)
- For typical DeFi rates, the difference is 0.5-1%
- Higher rates = bigger gap between APR and APY
How Utilization Affects Rates
The key driver of DeFi lending rates is utilization – the percentage of deposited funds that are currently borrowed.
Utilization Rate = Total Borrowed / Total Supplied
Example: $70M borrowed from $100M supplied = 70% utilizationMost protocols use a kinked interest rate model. At 0-70% utilization, rates increase gradually to encourage borrowing. Between 70-90% utilization, rates increase moderately to balance supply and demand. Above 90% utilization, rates spike sharply to attract more lenders and discourage additional borrowing.
The "kink" (where rates spike) typically occurs around 80-90% utilization. This mechanism:
- Protects lenders from being unable to withdraw
- Ensures some buffer liquidity always exists
- Creates market-driven rate discovery
Why Rates Vary Across Protocols
You might see USDC earning 5% on one protocol and 8% on another. Several factors explain these differences:
- Different utilization rates: Each protocol has its own supply/demand dynamics
- Interest rate model design: Some protocols are more aggressive (rates climb faster)
- Token incentives: Protocols may distribute governance tokens as additional rewards
- Risk premiums: Newer or riskier protocols might offer higher rates to attract deposits
- Chain-specific factors: The same protocol often has different rates on different networks
Evaluating Rate Sustainability
A high rate isn't always a good rate. Consider these questions:
- What's the utilization? Rates at 95% utilization might not last
- Are there token incentives? These can disappear or decrease
- Is the protocol established? Higher risk should mean higher rates
- What's the historical trend? Check if rates are stable or volatile
Pro tip: Look at 7-day and 30-day average rates, not just current rates. This gives a more realistic picture of expected returns.
Yield Strategies for DeFi Lending
Now that you understand the fundamentals, let's explore different approaches to maximizing your lending returns – from simple to advanced.
Strategy 1: Simple Supply
The most straightforward approach is simply depositing your assets into a lending protocol and earning the base interest rate.
How it works:
- Choose a reputable protocol
- Deposit your assets
- Earn interest automatically
- Withdraw whenever you want
Pros:
- Minimal complexity
- Easy to understand and manage
- Low gas costs (one deposit transaction)
- No liquidation risk
Cons:
- May not capture the best rates across protocols
- Rates can decline without notice
- Single protocol exposure
Best for: Beginners, smaller positions, or users who want to "set and forget."
Strategy 2: Rate Hunting Across Protocols
Active rate hunting involves moving your funds between protocols to capture the best available rates.
How it works:
- Monitor rates across multiple protocols
- Move funds when better rates appear
- Account for gas costs and timing
Pros:
- Potentially higher returns
- Learn about different protocols
Cons:
- Gas costs eat into gains (especially on Ethereum)
- Time-consuming to monitor
- Rates can change before you move funds
Best for: Users with larger positions (where gas is relatively small) and time to monitor markets.
Strategy 3: Leveraged Looping
This advanced strategy involves using borrowed funds to increase your lending position, amplifying yields.
How it works:
- Deposit collateral (e.g., USDC)
- Borrow against it (e.g., more USDC)
- Deposit the borrowed USDC
- Repeat to increase exposure
- Earn lending APY on a larger position while paying borrowing APY
Example:
- Start with $10,000 USDC
- Through looping, achieve $25,000 effective position
- If lending APY (5%) > borrowing APY (4%), you profit on the spread
Pros:
- Amplified returns when spreads are favorable
- Useful for farming token incentives
Cons:
- Liquidation risk if rates shift unfavorably
- Complexity and gas costs to set up
- Need to monitor position health
Best for: Experienced users who understand leverage risks. Superlend's Loop Vaults automate this process with built-in safety mechanisms.
Strategy 4: Yield Aggregators and Vaults
Yield aggregators automatically move your funds to optimize returns, handling the complexity for you.
How it works:
- Deposit into an aggregator vault
- The vault strategy allocates across protocols
- Rebalancing happens automatically
- Withdraw your funds plus earned yield
Pros:
- Professional management
- Gas-efficient (costs spread across depositors)
- No active monitoring needed
- Sophisticated strategies made accessible
Cons:
- Vault fees (typically 0-2% of yield)
- Smart contract risk of the aggregator itself
- Less control over specific allocations
Best for: Users who want optimized returns without active management. SuperFund is an example that optimizes across top lending protocols.
Matching Strategy to Your Situation
Different user profiles suit different strategies. If you're new to DeFi, start with simple supply to learn the basics first. Busy professionals benefit from yield aggregators for hands-off optimization. Users with large positions can pursue rate hunting since gas costs become negligible relative to returns. Risk-tolerant users might explore leveraged looping for higher potential returns. Those focused on diversification should use multiple protocols to spread risk.
Risks of DeFi Lending
DeFi lending offers attractive yields, but understanding the risks helps you protect your capital. Here are the main risks to consider:
Smart Contract Risk
Every DeFi protocol runs on smart contracts, and bugs in the code can lead to loss of funds.
What can go wrong:
- Coding errors that allow exploits
- Logic flaws that create unexpected behaviors
- Vulnerabilities in dependencies or integrations
How to mitigate:
- Use established protocols with multiple audits
- Check if the protocol has bug bounties and security practices
- Consider insurance options (like Nexus Mutual)
- Don't put all your funds in one protocol
Reality check: Even audited protocols have been exploited. Treat smart contract risk as unavoidable but manageable through diversification.
Liquidation Risk (for Borrowers)
If you're borrowing, liquidation is your primary risk. When collateral value drops below the required threshold, the protocol sells it to repay your debt.
What causes liquidation:
- Collateral price drops
- Debt grows from interest accrual
- Failing to monitor position health
How to mitigate:
- Maintain a conservative health factor (> 2.0)
- Set alerts for price movements
- Don't borrow the maximum allowed
- Use stable collateral for volatile borrows (or vice versa)
Protocol Risk
Beyond smart contracts, protocols can fail in other ways:
Oracle failures: DeFi protocols rely on price feeds. Manipulated or stale prices can cause improper liquidations or enable exploits.
Governance attacks: Protocols with token voting can be attacked if someone accumulates enough tokens to pass malicious proposals.
Economic exploits: Even with secure code, economic design flaws can be exploited through flash loans or market manipulation.
How to mitigate:
- Research the protocol's security practices
- Understand how the governance works
- Prefer protocols with time locks on changes
- Check the quality of oracle implementations
Market Volatility Risk
General market conditions affect DeFi lending in several ways:
For lenders:
- Rates can drop if borrowing demand falls
- In extreme stress, you might not be able to withdraw immediately
For borrowers:
- Rapid price movements can trigger liquidations
- Interest rates can spike during volatility
How to mitigate:
- Don't overcommit capital you might need urgently
- Build buffer into borrowing positions
- Understand that high utilization periods can limit withdrawals
Stablecoin Risk
Even stablecoins aren't perfectly stable:
Depegging: Stablecoins can trade below $1 during stress events Regulatory risk: Issuers face evolving regulatory requirements Counterparty risk: Centralized stablecoins depend on the issuer's solvency
How to mitigate:
- Diversify across different stablecoin types
- Monitor news about stablecoin issuers
- Understand the backing mechanism of each stablecoin you use
Getting Started with Superlend
If this guide has you ready to start DeFi lending, Superlend makes it easier to navigate the ecosystem.
What Superlend Offers
Superlend aggregates 350+ money markets across 11+ chains into one dashboard. Instead of checking rates on Aave, Compound, Morpho, and others separately, you see everything in one place.
Key benefits:
1. Compare rates instantly See current and historical rates across all major protocols. Filter by chain, asset, and protocol to find the best opportunities.
2. Execute from one interface No need to visit each protocol's website. Deposit, withdraw, supply, and borrow directly through Superlend.
3. Track your positions Monitor all your lending positions across protocols and chains in a unified dashboard.
4. Discover opportunities Find the best rates for your assets automatically, including opportunities you might not have known existed.
SuperFund: Automated Yield Optimization
For users who prefer a hands-off approach, SuperFund is Superlend's automated vault product.
How it works:
- Deposit your stablecoins (like USDC)
- SuperFund allocates across top lending protocols
- The vault rebalances to maintain optimal yields
- Withdraw anytime with your accumulated returns
SuperFund handles the complexity of rate monitoring, gas optimization, and security vetting – so you can earn yield without the active management.
Loop Vaults: Leveraged Yield Made Simple
For users who understand leverage and want amplified returns, Loop Vaults automate the looping strategy described earlier.
Benefits over manual looping:
- One-click setup (vs multiple transactions)
- Automatic position management
- Built-in safety mechanisms
- Gas-efficient execution
Important: Leveraged positions carry additional risk of liquidation. Only use funds you can afford to lose and understand the mechanics before participating.
How to Start
- Visit app.superlend.xyz
- Connect your wallet
- Explore rates across protocols
- Start with a small amount to learn the interface
- Scale up as you get comfortable
Frequently Asked Questions
Is DeFi lending safe?
DeFi lending involves real risks including smart contract vulnerabilities, market volatility, and protocol failures. However, established protocols have processed billions of dollars over several years. Safety depends on choosing reputable protocols, understanding the risks, and not investing more than you can afford to lose. Diversifying across protocols and maintaining conservative positions helps manage risk. For a deeper exploration of this topic, read Is DeFi Lending Safe?
How much can I earn from DeFi lending?
Returns vary significantly based on market conditions, the asset you're lending, and which protocol you use. Stablecoin lending typically yields 3-10% APY, while volatile assets might offer higher rates. Leveraged strategies can amplify returns but also increase risk. Historical rates are not guaranteed – DeFi rates fluctuate based on supply and demand.
What's the minimum amount to start DeFi lending?
There's no protocol-enforced minimum for most lending platforms. However, transaction fees (gas) make very small deposits impractical, especially on Ethereum mainnet. On Layer 2 networks (like Arbitrum, Optimism, or Base), gas costs are much lower, making it feasible to start with smaller amounts – even $50-100. Consider whether potential returns outweigh transaction costs for your deposit size.
Do I need to pay taxes on DeFi lending income?
In most jurisdictions, interest earned from DeFi lending is taxable income. Tax treatment varies by country, and the regulatory landscape is still evolving. Keep records of your deposits, withdrawals, and earnings. Consider using crypto tax software that can track DeFi transactions. Consult a tax professional familiar with cryptocurrency for advice specific to your situation.
Can I lose money lending in DeFi?
Yes. While lenders don't face liquidation risk (that's for borrowers), you can still lose money through:
- Smart contract exploits or hacks
- Stablecoin depegging events
- Protocol failures or rug pulls
- Earning less in fees than you pay in gas
Additionally, if you lend volatile assets, their dollar value can decline even as you earn interest. Risk management and protocol selection are crucial.
Conclusion
DeFi lending represents a fundamental shift in how financial services work – replacing intermediaries with code, enabling global access, and letting anyone earn on their crypto holdings. In 2026, the ecosystem has matured significantly, with battle-tested protocols, sophisticated strategies, and tools that make participation increasingly accessible.
Key takeaways from this guide:
- DeFi lending uses smart contracts to create pooled, permissionless lending markets
- Major protocols like Aave, Compound, and Morpho each offer unique advantages
- Asset selection matters – stablecoins for predictability, ETH/BTC for upside exposure
- Rates are driven by utilization – understanding this helps you evaluate opportunities
- Strategies range from simple supply to leveraged looping – match your approach to your risk tolerance
- Risks are real – smart contract vulnerabilities, market volatility, and protocol failures all deserve consideration
The best way to learn DeFi lending is to start small and build experience. Use aggregators like Superlend to explore the landscape, compare opportunities, and execute efficiently.
Ready to put your crypto to work? Start exploring DeFi lending on Superlend – one dashboard for 350+ money markets across 11+ chains.
This article is for educational purposes only and does not constitute financial advice. DeFi lending involves risks including smart contract vulnerabilities, market volatility, and potential loss of funds. Rates are variable and subject to change. Past performance does not guarantee future results. Always conduct your own research and never invest more than you can afford to lose.