What is DeFi lending?

DeFi lending is supplying crypto to a smart-contract pool to earn interest, or borrowing assets by posting collateral — all without a bank. Rates are set by supply and demand on protocols like Aave and Compound.

How do I judge whether a DeFi lending protocol is safe?

No lending protocol is 'safe' — weigh audit history, time in market, oracle design, collateral types, and governance concentration instead. Aave V3 and Compound V3 are the most battle-tested by these measures; newer designs like Morpho add curator-specific risk on top. Educational research, not financial advice.

What is the difference between Aave and Compound?

Aave supports multi-asset pools, eMode, and many chains. Compound V3 uses simpler Comet markets with one borrow asset per market. Inverse FiRM offers fixed-rate DOLA borrowing. Resupply mints reUSD against Curve and Frax lending positions. See our Aave vs Compound and Aave vs Resupply comparisons for a full breakdown.

Is Resupply the same as Curve LlamaLend V2?

No. LlamaLend V2 is Curve’s isolated lending product (first Ethereum markets: Inverse sDOLA and Frax sfrxUSD). Resupply is a separate CDP that takes Curve Lend and Fraxlend positions as collateral. Convex votes gauges for both surfaces. Educational research, not financial advice.

What happened with Morpho PT-reUSD in August 2026?

On 25 August 2026 a ~3% PT-reUSD oracle print liquidated about $36 million of looped Morpho debt in 14 minutes. Not a hack; lenders were reported whole. Skip PT looping if you cannot name the oracle and LLTV. See the incident log and the PT collateral how-not-to.

Topic hub · lending

DeFi lending guide

DeFi lending lets you supply crypto to earn a variable rate or borrow against collateral without a bank. Start with Aave or Morpho. Use Inverse FiRM when you need a fixed rate, Resupply when your collateral already sits in Curve or Frax markets, and skip leverage until a plain supply is boring.

Last updated: August 2026

Written by the Decentralized Finance editorial team, reviewed by Kaiser Khan, Editor in Chief — protocol research and lending markets.

Core protocol guides

Aave

Multi-chain lending standard

Compound

Comet single-base markets

Morpho Blue

Curated vault lending

SparkLend

Sky / USDS ecosystem

Curve Finance

Stable swaps and LlamaLend

Convex Finance

Boosted Curve gauges

Resupply

reUSD on Curve / Frax Lend

Inverse Finance

Fixed-rate FiRM markets

Frax

frxUSD and Fraxlend

Lending comparisons

Learn & tools

How to supply on Aave
Step-by-step lending deposit
Incident and liquidation log
PT-reUSD cascade, health-factor checklist
Pendle PTs as Morpho collateral
When to skip looping yield tokens
DeFi safety guide
Smart contract and liquidation risk
Live lending APY tool
Compare rates across protocols

Latest related news

Curve stack — Convex, Resupply, Inverse, Frax

Convex, Curve, Resupply, Inverse Finance and Frax share collateral, gauges and stablecoin rails. Read the flywheel first if you are new to the stack.

News

Morpho PT-reUSD liquidations

Hub

Incident and liquidation log

News

LlamaLend V2: Inverse sDOLA and Frax sfrxUSD

News

Resupply Summer campaign

Cluster

Convex × Curve × Resupply flywheel

DEX

Curve Finance

Yield

Convex Finance

CDP

Resupply

All DeFi lending articles

Complete index — 63 pages linked from this hub for crawlers and readers.

Morpho PT-reUSD Liquidations: $36M Cascade After a 3% Oracle Move
On 25 August 2026 a thin Pendle YT-reUSD tape moved PT-reUSD about 3% and Morpho liquidated roughly $36 million of loope
Aave Deposits Hit $30B, Stani Says ‘Liquidity Is Back’
On 22 August 2026 Stani Kulechov said Aave deposits crossed $30 billion. That is a protocol deposit print, not DeFiLlama
Aave V4 Launch: Hub & Spoke on Ethereum — Who Should Skip Migrating
Aave V4 went live on Ethereum on 30 March 2026 with Hub & Spoke accounting, a new liquidation engine, and a user risk pr
Curve LlamaLend V2: Inverse sDOLA and Frax sfrxUSD Markets, CRV Gauges Live
Curve’s July recap and early-August gauge votes put LlamaLend V2 on Ethereum with Inverse Finance sDOLA and Frax sfrxUSD
DeFi Lending Rates in June 2026: Where Yield Is—and Isn't—on Ethereum
Aave, Morpho, SparkLend, and Compound supply APYs have compressed in mid-2026 as TVL rebounds post-restaking stress. We
Best DeFi Lending Protocols 2026: Aave, Morpho, Spark & Compound Compared
DeFi lending protocols let you earn yield by supplying assets or borrow against crypto collateral. Aave, Morpho, Spark,
What is Instadapp? DeFi Smart Accounts and Fluid Explained
Instadapp is DeFi's leading account abstraction layer — letting users manage positions across Aave, Compound, and Maker
Convex, Curve and Resupply: The Complete Guide to DeFi's Yield Flywheel
Convex Finance, Curve Finance, and Resupply Finance form one of Ethereum's most capital-efficient DeFi clusters — booste
Resupply Finance in 2026: reUSD, RSUP and Positive-Carry Stablecoin Design
Resupply Finance lets Curve and Frax lenders mint reUSD against positions that keep earning yield — co-built by Convex a
Curve Finance in 2026: crvUSD, LlamaLend and the StableSwap Stack
Curve Finance remains Ethereum's specialist DEX for stablecoins and pegged assets — now extended by crvUSD, LLAMMA soft
Frax Finance in 2026: frxUSD, sFRAX, Fraxlend and the Resupply Connection
Frax Finance has grown into a multi-product ecosystem — FRAX v3, frxUSD, sFRAX yield, Fraxlend markets, Fraxtal L2, and
Inverse Finance in 2026: FiRM Fixed Rates, DOLA and sDOLA Explained
Inverse Finance offers fixed-rate DOLA borrowing via FiRM's Personal Collateral Escrow, plus sDOLA yield for stablecoin
What is Sky Protocol? USDS, sUSDS and When to Skip It
Sky is MakerDAO’s Endgame name: USDS, the Sky Savings Rate (sUSDS), SKY governance, and SparkLend. Verdict-first guide o
What is Benqi Finance? Avalanche Lending and Liquid Staking Explained
Benqi is Avalanche's leading lending protocol and liquid staking provider — offering qiTokens for lending and sAVAX for
What is Kamino Finance? Solana's Leading Lending and Yield Protocol
Kamino Finance is the largest lending protocol on Solana by TVL in 2026, offering automated liquidity strategies, CLMM m
Aave vs Resupply: DeFi Lending for Curve LPs Compared
Aave is the established DeFi lending giant; Resupply is a newer protocol purpose-built for Curve and Convex LP collatera
Aave vs Compound: Which DeFi Lending Protocol Is Better in 2026?
Aave and Compound are the two largest decentralised lending protocols by total value locked, collectively holding tens o
What is Resupply Finance? reUSD, RSUP and the Convex × Yearn CDP Protocol Explained (2026)
Resupply Finance is a decentralised CDP stablecoin protocol co-built by Convex Finance and Yearn Finance. Users deposit
What is Aave V3? The World's Largest DeFi Lending Protocol Explained (2026)
Aave V3 is the world's largest decentralised lending protocol with over $14.7 billion in total value locked across 14 ne
What is Morpho? Vaults, Isolated Markets and When to Skip It
Morpho Blue is isolated lending markets plus curator vaults — not a clone of Aave’s big pool. Verdict-first guide on whe
What is SparkLend? Sky Protocol's $3.3 Billion DeFi Lending Market Explained (2026)
SparkLend is a decentralised lending protocol built by Phoenix Labs and deeply integrated with Sky Protocol (formerly Ma
What is Maple Finance? Institutional DeFi Lending and the SYRUP Token Explained (2026)
Maple Finance is a decentralised credit protocol that connects institutional borrowers with on-chain lenders, holding ov
What is Compound V3? The Pioneer of DeFi Lending, Reinvented (2026)
Compound V3 (Comet) is a streamlined DeFi lending protocol holding over $1.28 billion in TVL across Ethereum and multipl
What is Venus Protocol? BNB Chain's Largest DeFi Lending Market Explained (2026)
Venus Protocol is the dominant decentralised money market on BNB Chain, with over $1.2 billion in TVL in its Core Pool.
What is Fluid Lending? Instadapp's Unified DeFi Protocol Explained (2026)
Fluid is a next-generation DeFi protocol from the Instadapp team that unifies lending, borrowing, and trading into a sin
What is Lista Lending? BNB Chain's Decentralised P2P Lending Protocol Explained (2026)
Lista Lending is a decentralised peer-to-peer lending protocol on BNB Chain, part of the Lista DAO ecosystem that combin
What is Euler V2? The Rebuilt Modular DeFi Lending Protocol Explained (2026)
Euler V2 is a modular DeFi lending protocol rebuilt from the ground up after the $196 million exploit of Euler V1 in Mar
What is Curve Finance? Stableswaps, crvUSD and When to Skip It
Curve is the specialist DEX for pegged assets, plus crvUSD and LlamaLend. Verdict-first guide on when Uniswap is enough,
What is Aave V4? Hub, Spoke and When to Skip It
Aave is the default multi-chain DeFi lending market. V4 (Ethereum, 30 March 2026) uses a Hub for liquidity and Spokes fo
What is Frax Finance? frxUSD, Fraxlend and When to Skip It
Frax issues frxUSD/sfrxUSD and Fraxlend markets that feed Resupply collateral and Curve LlamaLend V2. Verdict-first guid
What is Resupply? reUSD, Positive Carry and When to Skip It
Resupply mints reUSD against yield-bearing Curve Lend and Fraxlend positions that keep earning. Co-built by Convex and Y
What is Inverse Finance? FiRM, DOLA and When to Skip It
Inverse’s FiRM offers fixed-rate DOLA borrowing via personal collateral escrows. Verdict-first guide on when Aave’s vari
Frax Finance: The Financial Engine of the Internet
Frax Finance has evolved from a pioneering hybrid algorithmic stablecoin into a comprehensive DeFi ecosystem spanning li
What is Compound? V3 Comets and When to Skip It
Compound V3 (Comet) is single-base lending markets — simpler than Aave’s multi-asset pool. Verdict-first guide on when t
What is Morpho? DeFi Protocol Guide
Morpho is a decentralised lending protocol that optimises capital efficiency in DeFi borrowing markets — first by improv
Kelp DAO Contagion Reaches Solana: Kamino USDC Markets Hit 100% Utilization
The $292M Kelp DAO rsETH exploit spilled across chains as Kamino Finance on Solana saw USDC lending pools reach 100% uti
What is Zharta Finance? DeFi Protocol Guide
Zharta Finance is an on-chain DeFi protocol enabling fixed-rate, peer-to-peer lending and borrowing, targeted at institu
What is RAAC? DeFi Protocol Guide
RAAC is a decentralized protocol for real-world asset (RWA) lending and borrowing. It brings tokenized physical assets i
What is Flying Tulip? DeFi Protocol Guide
Flying Tulip is a full-stack, on-chain DeFi exchange created by Andre Cronje. It combines spot markets, derivatives, len
What is Blend? DeFi Protocol Guide
Blend is a decentralized, non-custodial lending protocol built on Stellar’s Soroban smart contract platform that enables
What is Ledn? DeFi Protocol Guide
Ledn is a Toronto-based digital asset financial firm founded in 2018 that provides Bitcoin-backed loans, savings, and tr
What is 8lends? DeFi Protocol Guide
8lends is a peer-to-peer crypto crowdlending platform on the Base blockchain that links Web3 investors with real-world b
What is Asymmetry Finance? DeFi Protocol Guide
Asymmetry Finance is a DeFi protocol on Ethereum that issues yield products such as the USDaf stablecoin and liquid stak
What is Yala? DeFi Protocol Guide
Yala is a Bitcoin-native liquidity protocol that lets holders earn yield from DeFi and Real World Assets (RWAs) while re
What is Metronome? DeFi Protocol Guide
Metronome is a decentralized finance protocol that enables users to lock various crypto holdings as collateral to mint a
What is Bucket Protocol? DeFi Protocol Guide
Bucket Protocol is a DeFi lending primitive on the Sui blockchain that issues a native USD-pegged stablecoin against cry
What is Mai Finance? DeFi Protocol Guide
Mai Finance is an open-source, non-custodial stablecoin system that lets users borrow the USD-pegged MAI at a 0% interes
What is Edel Finance? DeFi Protocol Guide
Edel Finance is a DeFi protocol deployed on the Base blockchain that combines a securities lending market for tokenized
What is Angle Protocol? DeFi Protocol Guide
Angle is an open-source, decentralized, capital-efficient and over-collateralized protocol that lets users mint and burn
What is Oro Finance? DeFi Protocol Guide
Oro Finance is a decentralized finance protocol that issues ORO, a digital gold token backed 1:1 by one gram of vaulted
What is Abracadabra.money? DeFi Protocol Guide
Abracadabra.money is a decentralized lending platform that accepts interest-bearing tokens as collateral to mint MIM, a
What is Liquity? DeFi Protocol Guide
Liquity is a decentralized Ethereum-based protocol that issues interest-free loans secured by Ether and paid out in the
What is Avalon Finance? DeFi Protocol Guide
Avalon Finance centers on Bitcoin and blends DeFi and CeFi lending with its native AVL token. It aims to connect on-chai
What is Felix Protocol? DeFi Protocol Guide
Felix Protocol is a decentralized borrowing and lending platform operating on the Hyperliquid Layer 1 blockchain. Built
What is LiquidOps? DeFi Protocol Guide
LiquidOps is a collateralized lending and borrowing protocol operating on Arweave and AO networks. Drawing inspiration f
What is Spark? DeFi Protocol Guide
Spark is a decentralized finance protocol that delivers lending and borrowing functionality across multiple Ethereum-com
What is BENQI? DeFi Protocol Guide
BENQI is a decentralized finance protocol operating on Avalanche that delivers liquid staking for AVAX through sAVAX, le
What is Lombard Finance? DeFi Protocol Guide
Lombard Finance is a decentralized finance platform designed to unlock Bitcoin's potential through staking, lending, and
What is Pendle Finance? DeFi Protocol Guide
Pendle Finance is a decentralized protocol allowing users to tokenize and trade future yield flows independently, withou
What is Borrow Automated Market Maker (BAMM)? DeFi Protocol Guide
The Borrow Automated Market Maker (BAMM) is a lending and borrowing system constructed on Fraxswap that operates indepen
What is SailFish Finance? DeFi Protocol Guide
SailFish Finance is the first native veDEX on EDUCHAIN, allocating 100% of protocol fees to its community and supplying
What is TN Vault? DeFi Protocol Guide
TN Vault is a multichain lending protocol that allows users to borrow USDT while retaining their cryptocurrency assets.
Aave V4 Launches on Ethereum: Hub-and-Spoke Architecture and the 'Aave Will Win' Revenue Plan
Aave V4 launched on Ethereum mainnet on March 30, 2026, introducing a hub-and-spoke lending model, unified liquidity acr

FAQ

DeFi lending — FAQ

What is DeFi lending?: DeFi lending is supplying crypto to a smart-contract pool to earn interest, or borrowing assets by posting collateral — all without a bank. Rates are set by supply and demand on protocols like Aave and Compound.
How do I judge whether a DeFi lending protocol is safe?: No lending protocol is 'safe' — weigh audit history, time in market, oracle design, collateral types, and governance concentration instead. Aave V3 and Compound V3 are the most battle-tested by these measures; newer designs like Morpho add curator-specific risk on top. Educational research, not financial advice.
What is the difference between Aave and Compound?: Aave supports multi-asset pools, eMode, and many chains. Compound V3 uses simpler Comet markets with one borrow asset per market. Inverse FiRM offers fixed-rate DOLA borrowing. Resupply mints reUSD against Curve and Frax lending positions. See our Aave vs Compound and Aave vs Resupply comparisons for a full breakdown.
Is Resupply the same as Curve LlamaLend V2?: No. LlamaLend V2 is Curve’s isolated lending product (first Ethereum markets: Inverse sDOLA and Frax sfrxUSD). Resupply is a separate CDP that takes Curve Lend and Fraxlend positions as collateral. Convex votes gauges for both surfaces. Educational research, not financial advice.
What happened with Morpho PT-reUSD in August 2026?: On 25 August 2026 a ~3% PT-reUSD oracle print liquidated about $36 million of looped Morpho debt in 14 minutes. Not a hack; lenders were reported whole. Skip PT looping if you cannot name the oracle and LLTV. See the incident log and the PT collateral how-not-to.