If you are pricing an onchain Bitcoin loan in June 2026, here is where rates actually sit across the major DeFi lending protocols, why they are so much lower than centralized lenders, and the catch that the headline number hides.
The short version: the average variable rate to borrow a stablecoin against wrapped Bitcoin is about 4.14% APR across the 19 markets we track on 8 protocols, with the cheapest at 1.46% and the most expensive at 7.79%. That is roughly six points below what centralized lenders charge. But every one of these rates is variable, so the number you open at is not the number you keep. For the live, daily-updated picture, the BoB DeFi Bitcoin Rate Index is the source.
The headline: variable USDC rate by protocol
This is the lowest available variable rate to borrow a USD stablecoin against wrapped Bitcoin on each protocol, as of late June 2026.
| Protocol | Market | Network | Variable APR | Collateral model |
|---|---|---|---|---|
| Granite | sBTC to USDC | Stacks | 1.46% | Isolated |
| Zest | sBTC to USDC | Stacks | 2.08% | Isolated |
| Aave v3 | cbBTC to USDT | Ethereum | 3.20% | Pooled |
| Morpho | cbBTC to USDT | Ethereum | 3.37% | Isolated |
| Euler v2 | cbBTC to USDC | Ethereum | 3.55% | Isolated |
| Compound v3 | cbBTC to USDC | Ethereum | 3.95% | Isolated |
| Benqi | BTC.b to USDC | Avalanche | 5.82% | Pooled |
| Dolomite | wBTC to USDC | Arbitrum | 7.79% | Isolated |
Average 4.14% · median 3.95% · range 1.46% to 7.79%. The full index covers 19 individual markets across these 8 protocols, holding roughly $9.8 billion in combined supply. You can filter and sort all of them on the onchain loans page.
Why these are so much lower than CeFi
In the same month, centralized Bitcoin lenders averaged about 10.46% APR for a standard loan, per our Bitcoin Loan Rates June 2026 report. Onchain rates sit far below that for structural reasons: there is no company, no underwriting desk, and no fixed-rate risk to price in. A smart contract sets the rate algorithmically from supply and demand, and the spread that a custodial lender keeps as margin mostly disappears.
That gap is real, but it is not free. You give up the things a centralized lender provides: a fixed rate, a support line, fiat payout to a bank account, and someone else managing custody and liquidations. With DeFi you do all of that yourself. We walk through the full tradeoff in CeFi vs DeFi Bitcoin loans.
The catch: these rates are variable
Every figure above floats. A DeFi borrow rate is a function of the market's utilization, the share of supplied stablecoin that is currently being borrowed. When a market fills up, the rate climbs to attract more deposits and discourage new borrowing, sometimes by several points within minutes. The 1.46% on Granite or 3.20% on Aave is a snapshot, not a lock.
This is the single biggest difference from a centralized loan, where the rate is typically fixed for the term. If you borrow onchain, you have to watch the rate, not just the price of Bitcoin. Budget for it to rise, and check the live index before and during your loan.
Depth matters as much as the rate
The lowest rates on the board come from the smallest markets. Granite and Zest on Stacks are cheap but hold only a few million dollars each, so a single large borrow can move the rate and liquidity is thin. By contrast, Aave v3 on Ethereum holds billions in supply at about 3.20%, which makes its rate far more stable and its exit far easier.
For a large or longer loan, a deep market at 3.5% can be a calmer place to sit than a tiny market at 1.5%. Our ranking methodology weighs rate, utilization, and total value locked together for exactly this reason, rather than sorting on the headline rate alone.
Isolated vs pooled collateral
The last column matters for risk. In an isolated market (Morpho, Euler, Compound III, Granite, Zest, Dolomite), your Bitcoin backs only your own loan and is not re-lent. In a pooled market (Aave, Benqi), deposits are part of a shared pool, which is closer to the rehypothecation some centralized lenders practice. Neither is wrong, but they are different risk profiles, and the cheapest rate is not automatically the safest structure.
How to read these rates
- They are variable, always. Plan for the rate to move. There is no fixed-term DeFi loan in this set.
- Self-custody is the point and the burden. No company holds your Bitcoin, but no company manages your liquidation either. If your loan-to-value crosses the threshold, the contract liquidates you automatically, often faster than a centralized lender would.
- Factor in gas and the wallet. Borrowing onchain means a self-custody wallet and network fees, which are trivial on some chains and meaningful on Ethereum. The lowest rate can be a false economy on a small loan.
- Deeper is steadier. A large market at a slightly higher rate is usually less volatile than a tiny market at the lowest rate.
This is a monthly snapshot
These are late June 2026 figures, captured from our daily onchain tracking. DeFi rates change continuously, so for the current number always check the live BoB DeFi Bitcoin Rate Index, and you can download the full daily history as JSON or CSV from the index page. We publish an updated onchain rates report each month, alongside our centralized lender report.
borrow/on/bitcoin is a comparison publisher, not a lender or a protocol. 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.