Best Stablecoin Borrowing Interest Rates

Best Stablecoin Borrowing Rates
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Updated July 22nd 2022. This article surveys the current borrowing interest rates for the major stablecoins across crypto lending platforms.

One issue with Bitcoin, Ethereum and other so-called ‘altcoins’ is that many investors are hanging on to them for the long term. Oftentimes, however, they’re interested in other more speculative short term crypto investments but they don’t want to sell their long term assets to fund a short term opportunity. Crypto loans are a good solution to this problem as people can deposit their Bitcoin with a lender and utilize its value by borrowing against it.

The most popular assets to borrow are stablecoins, as their value remains constant at one US dollar, they are highly liquid, and are accepted on all crypto to crypto exchanges.

Updated twice weekly, this report surveys borrowing interest rates for the Tether, USDC and Dai stablecoins across the major crypto finance platforms.  

Tether – Best Interest Rates For Borrowing

Tether (USDT) is the most popular stablecoin for borrowers as it is uniformly accepted on all crypto exchanges. 

Today AAVE  is offering the lowest USDT interest rate for Tether loans at 2.82%, followed by Compound at 3.39% and then Nebeus at 8%.

USDC – Best Interest Rates For Borrowing

USDC is the 2nd largest stablecoin by market capitalisation 

Today AAVE is offering the lowest USDC interest rate for loans at 1.41%, followed by Compound at 1.94% and then Notional at 2.46%.

Dai – Best Interest Rates For Borrowing

Demand for Dai is typically lower than for other stablecoins and as a result borrowing rates for Dai are also usually lower too. 

Today CREAM is offering the lowest DAI interest rate for loans at 1.44%, followed by AAVE at 1.71% and then Compound at 2.07%.