Bitcoin Lending Rates 2026: Supply and Borrow APRs
Bitcoin lending rates on Aave, Compound, Morpho, NAVI and Scallop: what lending BTC pays, what borrowing against it costs, and why.
Bitcoin lending has two sides, and their rates are far apart. Lending your BTC out paid between 0% and about 3% a year in DeFi on 2 November 2026. Borrowing stablecoins against BTC cost about 4% to 9%. This page lists both, market by market, with the source of each number.
All rates are variable and change with utilisation, often daily. This page covers DeFi money markets only. Not financial advice.
Rates for lending out BTC
| Market | Token | Supply APY | Borrow APY for the same token | Supplied |
|---|---|---|---|---|
| Aave v3, Ethereum | WBTC | 0.00% | 0.32% | $2.56B |
| Aave v3, Ethereum | cbBTC | 0.00% | 0.29% | $1.33B |
| Aave v3, Arbitrum | WBTC | 0.02% | 0.73% | $226M |
| Venus, BNB Chain | BTCB | 0.15% | 1.02% | $319M |
| NAVI, Sui | xBTC | 1.84% (incentive) | 0.08% | $4.3M |
| Scallop, Sui | zwBTC | 2.73% | 7.75% before rewards | $0.06M |
| NAVI, Sui | zwBTC | 3.23% (incentive) | 0.01% | $1.6M |
Sources: DefiLlama yields and lend-borrow APIs, NAVI open API (/api/navi/pools), Scallop API (sdk.api.scallop.io/api/market/migrate), all read 2 November 2026.
Why lending BTC pays so little
A lender earns what borrowers pay, scaled by how much of the pool is borrowed. Almost nobody borrows BTC: on Aave's Ethereum WBTC market, $55.2M of $2.56B was on loan. People deposit BTC to use it as collateral, not to lend it, so the supply rate stays near zero. Where BTC supply pays more, a token incentive usually pays it. NAVI's zwBTC rate was 0% interest plus a 3.23% CERT reward.
The Scallop exception
On Scallop the zwBTC market was 44% borrowed, so suppliers earned 2.73% in interest. Borrowers paid 7.75%, but Scallop also paid them a sSCA reward of about 10.5% (more with a veSCA boost), so a borrower was paid to hold the debt while the reward lasted. These programmes run on a budget and can end with little notice. Check the reward's remaining runway before you open a position that depends on it.
Rates for borrowing against BTC
A Bitcoin loan in DeFi means posting BTC as collateral and borrowing a stablecoin against it.
| Market | Collateral | You borrow | Borrow APY |
|---|---|---|---|
| Compound v3, Ethereum | WBTC, cbBTC | USDC | 3.99% |
| Aave v3, Ethereum | WBTC, cbBTC | USDC | 4.66% |
| Morpho, Base | cbBTC | USDC | 5.44% |
| Aave v3, Ethereum | WBTC, cbBTC | USDT | 5.69% |
| Aave v3, Base | cbBTC | USDC | 6.39% |
Source: DefiLlama lend-borrow API, 2 November 2026. Morpho markets are isolated, so the rate depends on the specific market you pick.
How much you can borrow
Each market sets a maximum loan-to-value. DefiLlama listed about 81% for WBTC on Aave v3 Ethereum and 86% for cbBTC markets on Morpho. Borrowing near the maximum leaves almost no room for a price drop. A 50% LTV survives a fall of roughly 40% before liquidation on those markets, an 80% LTV only a few percent. Health factor and liquidation price shows the formula.
Lending BTC against BTC: the loop
When one BTC token pays an incentive to suppliers and another costs almost nothing to borrow, you can supply the first, borrow the second, swap and supply again. On NAVI on 2 November, zwBTC supply paid 3.23% and xBTC cost 0.08% to borrow. Both legs are Bitcoin, so the position has little exposure to the BTC price, but it does depend on the two tokens staying at par.
jBTC by JewelSwap runs this loop at about 2x on Sui. Its projected net yield at 2 November rates was about 5.0% a year in BTC after its fees (0.5% in, 0.1% out, 10% of gains) and NAVI's one-off 0.30% borrow fee. A depeg breaker watches the Bluefin xBTC/zwBTC price and unwinds beyond ±2%. It is in beta with a 2.5 BTC deposit cap, and if NAVI ends the CERT incentive the loop stops paying.
What to check before you lend or borrow
- The exact token. WBTC, cbBTC, xBTC, zwBTC and LBTC have different issuers. See what wrapped Bitcoin is.
- Base rate vs incentive. Value token rewards at zero and see what is left.
- Utilisation. A market near 100% borrowed may not let you withdraw until borrowers repay.
- Liquidation settings. Know the maximum LTV and the liquidation penalty before you borrow.
- The protocol. Compare lenders in the best crypto lending platforms, or on Sui in NAVI vs Suilend vs Scallop.
For the full list of ways to earn on BTC, including staking, see the best ways to earn yield on Bitcoin.
Rates as of 2 November 2026 and variable. Not financial advice.
