Aave v3
Aave v3 runs 4 onchain markets we track for borrowing stablecoins against wrapped Bitcoin (cbBTC and wBTC) across Ethereum and Base. It is a permissionless set of smart contracts, no application, no credit check, no custodian. Every rate below is variable and moves with pool utilization. Market data verified June 24, 2026.
Lowest rate
3.20%
variable
Markets
4
Networks
2
Total TVL
$7.1B
Structure
Pooled
About Aave v3
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.
Markets
Every Aave v3 market we track, sorted by lowest variable borrow rate. Click any market for collateral, LTV, liquidation, and audit detail. Rates are variable point-in-time snapshots.
4 markets
Collateral & rehypothecation
Accepted collateral across Aave v3 markets: cbBTC and wBTC. These are wrapped or tokenized Bitcoin, not native BTC. Rehypothecation: Yes. Deposited collateral sits in a shared pool and can be reused by the protocol, which broadens what your position is exposed to.
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.
Liquidation
Liquidation on Aave v3 is automatic and onchain. If your loan-to-value ratio crosses a market's liquidation threshold, the protocol sells part of your collateral to repay debt, without notice and without a human margin call. Aave uses a Health Factor system. When your Health Factor drops below 1.0, liquidators can repay up to 50% of your debt and seize collateral plus a liquidation bonus. No grace period.
Per-market liquidation thresholds and max LTV are listed in each market card above (for example, max LTV 78% with liquidation at 83% on the first market).
Audits & security
Audit status we recorded for Aave v3: Audited (OpenZeppelin, SigmaPrime, Certora — ongoing since v1). An audit reduces but does not remove smart-contract risk. Permissionless protocols can still contain bugs or be exploited, and an exploit can put deposited collateral at risk. Treat audit status as one input, not a guarantee, and verify the current audit and bug-bounty posture on the protocol directly.
Supported wallets
You interact with Aave v3 from a self-custody wallet you control; we never ask you to connect a wallet here. Wallets recorded across these markets:
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 3.20%, 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 Ethereum and Base. 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.
borrowonbitcoin.com is a publisher, not a DeFi protocol operator, broker, or investment adviser. We may receive compensation from some protocols when you visit them through our site; affiliate links are labeled. Compensation never changes a protocol's order, position, or the data we publish. Listing a protocol is not an endorsement of that protocol or of DeFi lending. DeFi lending carries smart-contract, liquidation, and variable-rate risks; verify all terms with each protocol before acting.