The rise of lending platforms in the DeFi space, which allows users to earn interest on their crypto assets by lending them to borrowers, is one of the most promising developments in the crypto world. To help you make informed decisions, this guide comprehensively compares the best DeFi lending platforms available today.
Let’s look at factors such as supported coins, interest rates, APRs, terms, customer service, and user-friendliness to help you choose the top DeFi lending platforms that suit your needs.
Top DeFi Lending Platforms for 2024
- DeFi Swap – Emerging DeFi LendingPlatform for 2024
- Aqru – Lend Your Idle Bitcoin and Ethereum Tokens to Earn 10% per Year
- YouHodler – Global DeFi Lending Platform
- Crypto.com – Various DeFi Lending Accounts to Choose From
- Nexo – Earn up to 16% on Stablecoin Tokens
- Binance – Great DeFi Lending Platform for Medium and Low-Cap Coins
The Best DeFi Lending Platforms – Reviewed
Depositing your digital tokens into a leading DeFi lending platform can earn you an attractive interest rate. However, when choosing a provider, it is important to consider factors such as APYs, lock-up terms, security, and fees.
To help you make an informed decision, read the reviews of the best DeFi lending platforms for 2024.
1. DeFi Swap – Emerging DeFi Lending Platform for 2024
The overall best DeFi lending platform to consider right now is DeFi Swap. This newly launched platform offers a decentralized exchange that enables users to buy and sell digital currencies without requiring a third-party entity.
In addition to this, DeFi Swap also offers a variety of lending services that allow you to generate an attractive APY on your idle tokens. First, you have the platform’s crypto yield farming offering, which offers a variety of interest rates depending on the token you wish to lend.
Moreover, DeFi Swap allows you to choose your preferred lock-up period. The longer you are happy to lock the tokens away, the more you will be paid in interest.
If you choose to lock-up your tokens for a period of 365 days, you can earn an annual percentage yield (APY) of 75%. There are also two other options available; you can choose a lock-up period of 90 days to earn a 45% APY or a 180-day lock-up to earn a 60% APY. Regardless of the token you choose to lend, DeFi Swap will return your principal amount along with the interest you earned once the lock-up period is over.
The second lending tool available is providing liquidity to the DeFi Swap exchange. In doing so, you will earn a share of any trading fees collected by the platform.
DeFi lending services are executed and maintained by transparent and immutable smart contracts.
The platform supports MetaMask and WalletConnect, enabling you to use Trust Wallet. DeFi Swap also plans to launch an iOS/Android mobile app and an NFT marketplace in the coming months.
Pros
Cons
Cryptoassets are a highly volatile unregulated investment product.
2. Aqru – Lend Your Idle Bitcoin and Ethereum Tokens to Earn 10% per Year
Aqru is a top-rated DeFi lending platform allowing you to earn interest on idle digital tokens. By opening a crypto savings account with this provider, you will earn interest on Bitcoin and Ethereum deposits.
You will earn an even more attractive APY if you deposit a supported stablecoin. At Aqru, this includes DAI, Tether, and USD Coin. All of the crypto interest accounts offered by Aqru come without lock-up terms. As such, you will earn interest on your chosen account flexibly – meaning you can elect to withdraw whenever you wish.
Aqru distributes interest payments every 24 hours, meaning that you can instantly reinvest your interest payments into the same account to benefit from the impact of compound growth.
You keep tabs on how much interest your tokens generate by logging into your account. Perhaps the easiest way to do this is to download the Aqru app to your mobile phone. The Aqru app has been fully optimized for iOS and Android devices. We should also note that the Aqru app and website are very user-friendly.
Moreover, Aqru gets extra bonus points for supporting fiat currencies. You can deposit GBP, USD, or EUR into your account with a debit/credit card or bank wire and convert the cash into a supported digital asset.
In doing so, your chosen crypto token will be deposited into its respective interest-bearing account on your behalf. There are no fees for withdrawing fiat money out of Aqru. However, a $20 fee will apply on crypto withdrawals. And finally, no commissions are deducted from the interest you earn at Aqru.
Pros
Cons
Cryptoassets are a highly volatile unregulated investment product.
3. YouHodler – Global DeFi Lending Platform
With crypto growing, many people are looking for the best DeFi lending platform. Swiss-based YouHodler aims to take that title thanks to its well-designed platform, great rates, and innovative approach.
YouHodler is a secure exchange with more than 150,000 users worldwide. It has incorporated Ledger Vault technology to provide clients with many custodial options. Furthermore, the platform’s unique ‘3-factor authentication’ allows investors with over $10,000 to block crypto withdrawals to add an extra layer of protection.
Loans on YouHodler are simple and easy to understand. Users can decide on payback terms, ranging from 30 to 365 days. The loan-to-value (loan-to-collateral) ratio ranges from 90% to 50% based on the payback term, which is much higher than most platforms. Furthermore, YouHodler supports loans using the top 50 cryptocurrencies, meaning plenty of collateral options exist.
There’s a reason why YouHodler is quickly picking up steam. It’s a great choice for investors looking for a high loan-to-value lender. It has an easy-to-understand interface and clearly defined terms, so there won’t be any nasty surprises when lending with YouHodler.
Pros
Cons
Cryptoassets are a highly volatile unregulated investment product.
4. Crypto.com – Various DeFi Lending Accounts to Choose From
The next option to consider in your search for the best multi-chain DeFi lending platform is Crypto.com. This platform offers many services, including a fully-fledged crypto exchange, interest-earning accounts, a DeFi wallet, loans, credit cards, and more. As such, Crypto.com offers a one-stop shop for all things DeFi.
In terms of its lending services, you can earn interest on dozens of different crypto assets. APYS vary depending on the respective token, as well as the lock-up term that you choose. You can have a flexible account or a term of one or three months.
The longer you are happy to lock your tokens away, the more you earn. Moreover, Crypto.com allows you to boost your interest rate by staking CRO.
Nonetheless, the top-tier rate available on Crypto.com is 14.5% per year. Crucially, there are no limits in place – you can maximize the income you generate from the platform’s lending tool. At the other end of the spectrum, Crypto.com also allows you to play the role of a borrower.
Crypto.com offers over 250 digital tokens on its platform if you are also interested in crypto exchange services. You will pay just 0.40% per slide to buy and sell tokens here, albeit low rates are offered when you trade large volumes or stake CRO. You can access the aforementioned services and features online or via the Crypto.com app.
Pros
Cons
5. Nexo – Earn up to 16% on Stablecoin Tokens
Nexo is perhaps one of the best DeFi lending platforms for those seeking to generate interest in stablecoins. This top-rated platform offers up to 16% interest rates on UST tokens. Other stablecoins, such as Tether and True USD, pay a lower interest rate of 12%.
The highest interest rate at Nexo is paid on a conventional crypto token. That is to say, by depositing Axie Infinity, you will be paid a highly attractive rate of 36%. However, it is important to note that the aforementioned rates are based on earning your interest payments in NEXO – the digital asset native to this platform.
Otherwise, your interest rate is reduced slightly. In addition to its interest accounts, Nexo allows you to borrow funds. You can borrow from $50 to $2 million in fiat or crypto. By depositing Bitcoin as collateral, you can access an LTV of 50% with no credit checks. As such, Nexo loans are approved instantly. Other tokens require a higher collateral rate.
Pros
Cons
Cryptoassets are a highly volatile unregulated investment product.
6. Binance – Great DeFi Lending Platform for Medium and Low-Cap Coins
The final option to consider from our list of the best DeFi lending platforms is Binance. This platform is best known for its leading crypto exchange, offering over 1,000 trading markets to its nearly 100 million clients.
You can, however, use Binance for its DeFi lending services too. At the forefront of this is its crypto interest accounts, which offer some of the best yields in the market on medium and low-cap coins. For instance, This is also the case with its liquidity provision tools.
For example, if you provide liquidity on LUNA/BNB, you can earn up to an APY of 161%. BSW/USDT is also very competitive at 133%. If you are interested in some of the high yields available at Binance, you can purchase the respective digital currency directly on its exchange. After all, the platform is home to 600+ coins.
Opening an account at Binance takes just minutes, and if you live in an eligible country, you can deposit funds with a debit/credit card. Fees will vary depending on your country of residence. Crypto deposits are also supported at Binance. Finally, the Binance app is available on iOS and Android, doubling up as both an exchange and wallet.
Pros
Cons
Cryptoassets are a highly volatile unregulated investment product.
Best Defi Lending Platforms Compared
The comparison table below highlights the core features and offerings of the five DeFi lending platforms that we reviewed in the sections above.
| Best Crypto APR | Best Stablecoin APR | Terms | Staking Required for Best Rates? | |
| DeFi Swap | 75% | TBC | 30-days to 1-year | No |
| Aqru | 7% | 12% | Flexible accounts – No limits | No |
| YouHodler | 6.8% | 12.3% | Flexible accounts – No limits | No |
| Crypto.com | 14.50% | 10% | Flexible – 3 months | Yes |
| Nexo | 36% | 16% | Fixed and Flexible | Yes |
| Binance | Over 100% | 19%+ | Various terms | No |
The most important thing to remember when choosing the best DeFi lending platform is to ensure you have a full and frank understanding of the underlying terms and conditions.
In addition to lock-up terms, you should explore whether APYs can change without notice. You should also explore factors surrounding fees and limits.
How Does DeFi Lending Work?
The overarching objective of DeFi crypto lending is to connect investors and borrowers on a peer-to-peer basis. This means that loans can be funded by everyday citizens and thus – there is no longer a requirement for centralized bodies like banks and financial institutions.
From investors’ perspective, maximizing your potential earnings by depositing the funds into a DeFi lending account makes sense if you currently own cryptocurrency tokens. In doing so, your tokens will be used to facilitate loans. In turn, you will be paid a interest rate if the tokens are loaned out.
Crucially, there are some very attractive yields on offer at DeFi lending platforms.
Although this practice isn’t risk-free, loans that you fund are secured with collateral. For instance, at Crypto.com, users are offered a maximum LTV (Loan to Value) ratio of 50%. This means that by providing $10,000 worth of collateral, the user could borrow up to $5,000.
If you are considering using DeFi lending platforms to borrow funds, you will not need to go through a credit check. You won’t even need to give any information about your financial background or affordability levels. Instead, you must deposit your collateral and decide which fiat or crypto asset you wish to borrow.
DeFi Lending vs. Traditional Lending/Borrowing
One of the key differences between traditional lending and DeFi is that conventional banking involves time-consuming and arduous checks to determine a customer’s financial status. On the other hand, in DeFi, loans are instantly granted as long as the individual meets the collateral requirements. Smart contracts handle much of the review process, simplifying things for both the lender and borrower. Moreover, DeFi loans usually offer much better returns than traditional lending markets.
How to Choose a DeFi Lending Platform?
To maximize your DeFi lending experience, it’s crucial to carefully assess and analyze various factors when selecting the most suitable platform.
- For DeFi lending platforms, transparency is essential. Users must be able to trust that their funds are secure and easily accessible when needed. Platforms that provide clear and concise information about their terms, conditions, and security measures are more likely to gain user trust.
- Security is another critical factor for DeFi lending platforms, as they often hold substantial user funds. Such platforms must take measures to protect user funds from theft and fraud. Platforms that use robust security measures, such as multi-factor authentication and cold storage, are more likely to be secure.
- Finally, a user-friendly experience is also essential for DeFi lending platforms. Users should be able to access and use the platform’s features easily, without needing to be experts in DeFi. Platforms that offer a user-friendly interface and clear and concise instructions are more likely to be used by users.
Conclusion
In conclusion, the list of top DeFi lending platforms provided here allows you to earn an attractive APY for your idle tokens. By participating in these platforms, you can lend your tokens to borrowers who need funds without a centralized intermediary.
Based on key factors like supported coins, interest rates, APRs, terms, customer service, and user-friendliness, choose the best DeFi lending platforms that suit your needs.
FAQs
What is a DeFi lending protocol?[/Q2]
DeFi lending protocols allow you to earn interest on digital assets. You simply need to deposit your chosen token into the platform and in some cases – decide on which lock-up term you wish to agree to. [/A2]
How do loans work in DeFi?[/Q3]