Aave v3 Review: 2026 Bitcoin Loan Comparison
Market data verified Invalid Date · Verified daily
Aave v3 is the largest DeFi lending protocol by total value locked. It uses a pooled model where all deposits in a given asset share a single pool. Wrapped Bitcoin is accepted as collateral to borrow stablecoins.
Your Aave v3 loan
BTC $63,706 · liveYour loan purpose, wrapped-Bitcoin choice, and location are recorded to improve the options we surface. They don’t change Aave v3’s onchain terms, which are the same for every borrower.
Estimate only, at BTC $63,706. Self-custody · Confirm live terms on Aave v3.
Disclaimer. Every figure here, including the projected rate, is an estimate for general information, not a quote, an offer of credit, or financial advice. DeFi lending protocols are permissionless smart contracts, not regulated entities. Rates are variable and change continuously with pool utilization; the rate shown is a point-in-time snapshot. Your Bitcoin collateral is held on-chain — by the protocol's smart contracts, not a custodian — and can be liquidated automatically if your loan-to-value ratio crosses a liquidation threshold, without notice and without recourse. Smart contracts can contain bugs or be exploited. Some protocols rehypothecate deposited collateral. We are a publisher, not a DeFi protocol operator, broker, or investment adviser; nothing here is a recommendation to use any protocol. Verify all terms directly with each protocol before acting.
Aave v3hasn’t provided a statement for this page yet. When they do, their own description of the protocol will appear here, clearly labelled as their words.
Key facts
- Collateral accepted: cbBTC and wBTC — wrapped or tokenized Bitcoin, not native BTC.
- Runs on Base and Ethereum; 4 markets we track.
- Structure: Pooled — deposited collateral is lent to other borrowers.
- Lowest variable rate we recorded: 3.61% (point-in-time, not fixed).
- Audit status recorded: Audited (OpenZeppelin, SigmaPrime, Certora — ongoing since v1).
Key risks
- Variable rates only. Every rate moves continuously with pool utilization — there is no fixed-rate option, and your cost can rise after you borrow.
- Automatic liquidation with no grace period. If your LTV crosses the market's liquidation threshold, the protocol sells collateral onchain to repay debt, without notice and without a human margin call.
- Wrapped/tokenized Bitcoin. You post cbBTC and wBTC, each carrying its issuer's peg and bridge/custody risk rather than native BTC.
- Rehypothecation. Deposited collateral sits in a shared pool and can be re-lent, broadening what your position is exposed to.
- Smart-contract risk. An audit reduces but does not remove it; an exploit can put deposited collateral at risk, and there is no counterparty to call.
Aave is a pooled lending protocol. Your Bitcoin collateral earns a supply APY and is made available to other borrowers in the pool. This introduces additional counterparty risk compared to isolated-market protocols.
Aave v3 markets
Every Aave v3 market we track, sorted by lowest variable borrow rate. Rates are variable point-in-time snapshots.
4 markets
How Aave v3 compares
| Protocol | Lowest rate | Max LTV | Structure | Rehypothecation |
|---|---|---|---|---|
| Aave v3 | 3.61% | 78% | Pooled | Yes |
| Fluid | 6.92% | 85% | Isolated | No |
| Euler v2 | 6.96% | 84% | Configurable | Optional |
| Morpho | 3.60% | 86% | Isolated | No |
| Dolomite | 8.41% | 75% | Pooled | Yes |
| Kamino | 5.39% | 82% | Pooled | Yes |
| Compound v3 | 3.92% | 80% | Isolated | No |
| Benqi | 5.77% | 65% | Pooled | Yes |
| Zest Protocol | 2.14% | 60% | Configurable | Optional |
| Venus | 4.19% | 80% | Pooled | Yes |
Frequently asked
What Bitcoin can I use as collateral on Aave v3?
Across the Aave v3 markets we track you can post cbBTC and wBTC as collateral. These are wrapped or tokenized representations of Bitcoin that live on the underlying network, not native BTC. Each market is matched to a specific collateral token and stablecoin, so confirm the exact token on the protocol before depositing.
Are Aave v3 markets isolated or pooled?
The Aave v3 markets we track are pooled, meaning deposited collateral sits in a shared lending pool and can be rehypothecated. That broadens what your collateral is exposed to. The per-market detail shows the rehypothecation note we recorded.
How are Aave v3 borrow rates set?
Every Aave v3 borrow rate is variable. Rates are determined algorithmically by each pool's utilization, the share of supplied liquidity that is currently borrowed, and they move continuously as borrowers enter and exit. The lowest variable rate we recorded across Aave v3 markets was 3.61%, a point-in-time snapshot, not a fixed or promotional rate. There is no fixed-rate option; the on-protocol interface shows the live rate.
How does liquidation work on Aave v3?
Aave v3 liquidations are automatic and onchain. If your loan-to-value ratio crosses the market's liquidation threshold, because the borrowed balance grew with interest or the collateral's price fell, a portion of your collateral is sold by the protocol to repay debt, without notice and without recourse. There is no grace period or margin call from a human. Keep a buffer below the maximum LTV and monitor your position.
Which networks does Aave v3 operate on?
The Aave v3 markets we track run on Base and Ethereum. The network determines which wrapped-Bitcoin tokens are available, gas costs, and which wallets you can connect. Bridging Bitcoin to the right network and token is a prerequisite before you can borrow.
Is Aave v3 custodial?
No. Aave v3 is a permissionless set of smart contracts, not a custodian, broker, or regulated lender. Your collateral is held by the protocol's contracts onchain rather than by a company, and there is no application or credit check. That also means there is no counterparty to call if something goes wrong; the smart-contract risk is yours to assess.
DeFi lending protocols are permissionless smart contracts, not regulated entities. Rates are variable and change continuously with pool utilization; the rate shown is a point-in-time snapshot. Your Bitcoin collateral is held on-chain — by the protocol's smart contracts, not a custodian — and can be liquidated automatically if your loan-to-value ratio crosses a liquidation threshold, without notice and without recourse. Smart contracts can contain bugs or be exploited. Some protocols rehypothecate deposited collateral. We are a publisher, not a DeFi protocol operator, broker, or investment adviser; nothing here is a recommendation to use any protocol. Verify all terms directly with each protocol before acting.