This is the July 2026 edition of our monthly onchain rate report, covering the 10 protocols in the BoB DeFi Bitcoin Rate Index.
Published 31 July 2026. Updated 17 August 2026 with the comparison to the following month.
The TVL-weighted average variable rate to borrow USDC against wrapped Bitcoin was 4.44% APR through July, across 16 pools on 10 protocols holding about $4.7 billion in supply. For current numbers, the live BoB DeFi Bitcoin Rate Index is the source.
The headline: lowest variable USDC rate by protocol
The lowest available variable rate to borrow USDC against a Bitcoin-backed asset on each protocol, as at 31 July 2026.
| Protocol | Market | Network | Variable APR | Supply |
|---|---|---|---|---|
| Granite | sBTC to USDC | Stacks | 1.65% | $5M |
| Zest Protocol | sBTC to USDC | Stacks | 2.14% | $10M |
| Compound v3 | cbBTC to USDC | Ethereum | 3.94% | $343M |
| Morpho | cbBTC to USDC | Ethereum | 4.05% | $305M |
| Aave v3 | wBTC to USDC | Ethereum | 4.07% | $2,118M |
| Kamino | cbBTC to USDC | Solana | 5.57% | $112M |
| Benqi | BTC.b to USDC | Avalanche | 6.46% | $18M |
| Fluid | cbBTC to USDC | Ethereum | 6.58% | $8M |
| Euler v2 | LBTC to USDC | Ethereum | 6.88% | $74M |
| Dolomite | wBTC to USDC | Arbitrum | 7.86% | $5M |
The published index is TVL-weighted, so it is not the simple average of that column. Weighting by supply pulls it toward the deep Ethereum markets and lands at 4.44%.
The month was wider than the average suggests
| Weighted index | Cheapest market | Dearest market | |
|---|---|---|---|
| Range across July | 4.20% to 5.94% | 1.65% to 3.96% | 7.39% to 12.13% |
The index held a 174 basis point band, noticeably wider than the 43 points it held in August. Individual markets were wider still. Four separate days carried a market above 9%: 12.13% on 1 July, 9.81% on 13 July, 10.01% on 15 July, and 10.85% on 22 July.
Utilization across the set ran between 87% and 91% all month, which is the mechanism behind the moves. When pools are that heavily used, a modest change in borrowing demand has nowhere to go except into the rate. We cover that in what moves the DeFi borrow rate.
The comparison that makes the point
Centralized lenders averaged 10.42% APR through the same month, per our Bitcoin Loan Rates July 2026 report, and not one of the six changed its published rate at any point in July.
So the onchain index repriced daily across a 174 basis point band while the custodial market sat still for 31 days. The roughly six point gap between them is the compensation for taking that variability, plus self-custody and self-managed liquidation, onto yourself. The full tradeoff is in CeFi vs DeFi Bitcoin loans.
Update, 17 August: what changed going into August
One protocol moved sharply after this snapshot. Euler v2 fell from 6.88% at the end of July to 3.59% by mid-August, taking it from the dearer half of the board to third cheapest. Morpho went the other way, from 4.05% to 4.54%. The deep Ethereum markets barely moved: Aave 4.07% to 3.99%, Compound 3.94% to 3.93%.
This is worth noting because it is easy to read a protocol's position on this table as a standing characteristic. It is not. It is where that market's utilization happened to sit on the day of the snapshot.
Depth and the cheapest rate
The floor was Granite on Stacks at 1.65%, on a market holding about $5 million, with Zest Protocol just above at 2.14% on roughly $10 million. Both are genuinely the cheapest published rates we tracked, and both are small enough that a single sizeable borrow could move them substantially.
At the other end of the depth range, Aave v3 carried about $2.1 billion at 4.07%. For a large or longer loan, a deep market a couple of points higher is a calmer place to sit and easier to exit. Our ranking methodology weighs rate, utilization, and total value locked together rather than sorting on the headline rate alone.
How to read these rates
- They are variable, always. July is a good illustration: the index moved across a 174 basis point band while custodial rates did not move at all.
- Check utilization, not just rate. At 87% to 91%, these markets sat close to the part of the curve where rates climb fastest.
- Self-custody is the point and the burden. No company holds your Bitcoin, but no company manages your liquidation either.
- Factor in gas and the wallet. The lowest rate can be a false economy on a small loan.
This is a historical snapshot
These are July 2026 figures and should not be used to price a loan today. For current numbers use the live BoB DeFi Bitcoin Rate Index, and you can download the full daily history as JSON or CSV from the index page. The neighbouring editions are June 2026 and August 2026, and the custodial comparison is Bitcoin Loan Rates July 2026.
borrow/on/bitcoin is a comparison publisher, not a lender or a protocol. We may earn a commission if you open a loan through a link on this page, which does not affect the rates shown or the order they appear in. Nothing here is a recommendation of one protocol over another, and nothing here is financial advice. DeFi borrowing carries smart-contract, liquidation, and stablecoin risks. Verify all rates and terms in the protocol directly before borrowing.