Compound
Compound is an algorithmic, autonomous protocol backed by Coinbase. The difference is that interest rates are “floating,” meaning they fluctuate constantly according to supply and demand. A range of tokens are supported including ETH, DAI, UNI, BAT and WBTC, with the best APY at present 9.8% for USDC.
dYdX
dYdX supports many of the same assets as Compound and offers interest rates as high as 11.31% (USDC). Because there is no lock-up period, interest is paid continuously, with users able to close their position and withdraw funds whenever they like. Interest also continuously compounds, meaning if the value of your stake increases, you’ll earn interest on that sum rather than the value of the principal.
Aave
Aave is a defi lending protocol that provides passive crypto earning opportunities galore. Both stable and variable interest rates are available, and users can also stake the native token (AAVE) to earn protocol fees and rewards on top. Depositors also earn a share of the fees from flash loans offered on the platform.
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