Best DeFi Lending Protocols in 2025

Venus is a DeFi protocol for lending and borrowing crypto, launched in 2020. It merges Maker’s stablecoin minting with Compound’s algorithmic money markets, delivering key features and a smooth user experience in one platform. Since its launch, the platform has grown significantly, now supporting 65 different markets across 8 blockchains and continuously expanding. Additionally, Venus stands out for its strong security standards, having undergone multiple audits from CertiK, PeckShield, and other trusted firms. Moreover, Venus holds a security score of over 91 from CertiK, ranking among the top ten lending and borrowing projects.

The platform features an intuitive interface and comprehensive guides on its usage, making it accessible to all types of users, from beginners to experienced ones. It provides detailed position tracking, including information on APY, daily earnings, borrow limits, and safe limits. Venus Protocol places a strong emphasis on risk management, implementing separate lending and borrowing pools: the core pool and the isolated pool. Isolated Pools group assets separately with customized risk management. This setup helps users manage risk, earn yield, and prevents failures from impacting the entire protocol. Each market in an Isolated Pool also offers custom rewards to incentivize users.

Venus Protocol has its own native token, XVS, which serves as a governance token, allowing holders to participate in on-chain voting for protocol changes. For lending benefits, users can stake XVS to enhance their annual yields for lending and reduce borrowing rates by participating in the Venus Prime program, which requires staking over 1000 XVS.

1. Visit the Venus app and connect your wallet.
2. Choose an asset from the core or isolated pool that you want to supply or borrow.
3. Enter the amount you wish to supply and confirm two transactions in your wallet (approval and supply).
4. Optionally, check the “collateral” box to use the assets for borrowing.

Figure Markets is a blockchain-based platform offering a hybrid of decentralized finance (DeFi) and centralized finance (CeFi) services. Particularly, it focuses on crypto lending, trading and yield-earning. It is built on the Provenance Blockchain and designed specifically for financial transactions.

The platform allows users to borrow fiat currencies (e.g., USD, EUR, BRL) or stablecoins (e.g., USDC, USDT) against assets like BTC and ETH. Loans on Figure Markets are available for up to 75% of the collateral’s value, with some products offering up to 90% loan-to-value (LTV) ratios. It offers flexible terms,, with options for monthly interest-only payments or deferring interest until maturity.

As for yield-earning products, Figure Markets’ clients can enjoy:

• Forward Vault, where eligible users can invest to earn up to 7% Net APY.
• Demo Prime that connects lenders and borrowers via a Dutch auction system for earning passive income up to 10% returns.
• All of these yield-earning products tie back into their Crypto Backed Loans where users borrow against their BTC & ETH to reinvest into more crypto, stabilize while earning yield, or personal investment needs.

To protect users’ assets, Figure Markets employ multi-party computation (MPC). This technology splits private keys into several parts that are further controlled by separate hosts, which reduces risks of losing assets.

1. Visit the Figure Markets app and connect your wallet.
2. Deposit funds to start trading, borrowing or earning yield.
3. Decide what you want to do and opt for that option.

Aave is a decentralized liquidity protocol that allows users to lend and borrow crypto. The first version of the project (V1) was launched in January 2020. Since its launch, Aave has become the leading protocol by TVL, with over $18 billion in total value locked, more than 2.3 million users, and support for 15 blockchains. The protocol is also known for its high security, having passed audits and maintaining a hack-free record.

Aave stands out for its multifunctionality, offering users a wide range of lending tools. The platform provides Flash Loans, as well as several useful features like Isolated Mode or Efficiency Mode, which allows borrowers to maximize their borrowing power based on their collateral. The platform also integrates a DeFi simulator, allowing users to test and simulate position liquidation scenarios.

Aave has its own token, AAVE, which serves as the native governance token of the protocol. Holders are able to participate in on-chain voting, contributing to decisions regarding protocol changes. In the lending platform, users who stake AAVE receive benefits in the form of reduced GHO stablecoin borrowing rates. Additionally, AAVE can be used as collateral for borrowing.

1. Visit the Aave app and connect your wallet.
2. Choose an asset from the available markets that you want to supply or borrow.
3. Enter the amount you wish to supply and confirm two transactions in your wallet (approval and supply).
4. Optionally, enable the “Use as Collateral” button to use the assets for borrowing.

Summer.fi is a decentralized application (dApp) designed for yield farming, borrowing and lending crypto. The project was introduced in 2016 as OasisDEX and later transformed into Oasis.app, serving as a front-end interface for Maker. In 2023, it was rebranded to Summer.fi and has since evolved into a comprehensive platform integrating multiple protocols, including Maker, Ajna, Spart, Morpho, and Aave.

Summer.fi offers two main products:

• Lazy Summer Protocol – An automated, passive lending solution focused on optimizing yields with minimal effort.
• Summer.fi Pro – A platform for lending, borrowing, and earning, built for seasoned DeFi users.

The project’s native token, SUMR, is the governance token of the Lazy Summer Protocol. It is not tradable until July 1, 2025, and can only be used for protocol governance, ensuring a focus on utility rather than speculation. Users can stake SUMR and earn rewards by interacting with the protocol.

1. Go to Summer.fi PRO and connect your wallet.
2. Select an asset from the available markets to supply or borrow.
3. Enter the amount to supply and create a Smart DeFi account.
4. Deposit your assets to earn yield or use them as collateral for borrowing.

Compound is a DeFi protocol that enables users to borrow and lend crypto. Founded in 2017, it was officially launched in 2018. Since then, Compound has built a large user and developer base, becoming one of the top five lending protocols by TVL, with $2.37 billion at the time of writing.

Compound stands out for its reliability, as the project’s smart contracts have undergone a series of audits by leading third-party firms. Additionally, Compound boasts integrated extensions, such as the Advanced Transaction feature, which allows users to combine actions within the protocol into a single transaction, saving on fees. It also offers the Collateral Swap feature, enabling users to change their collateral without the need to close their borrowing position. Moreover, the project features an intuitive interface and detailed guides, allowing users to navigate the dApp terminal.

Compound has its native token, COMP, which serves as the governance token of the protocol. Holders can participate in on-chain voting on protocol changes.

1. Go to the Compound app and connect your wallet.
2. Navigate to the dashboard and select the chain and asset you want to lend or borrow.
3. Click the “supply” button, enter the amount of the asset, and click the “add action” button to supply.
4. Then, you can borrow using the deposited assets as collateral.

SparkLend is a decentralized protocol that enables users to lend and borrow. It is one of the core products of the Spark project, introduced in 2023. Spark itself is part of the Sky ecosystem (formerly MakerDAO) and is built on Sky Protocol. In a short period since its introduction, Spark has become the 4th largest project by TVL among all lending protocols, reaching over $2.52 billion.

Spark stands out for its simple interface and beginner-friendly environment, offering detailed guides for newcomers and a Sandbox mode that allows users to explore all borrowing and lending features in a risk-free setting with unlimited tokens. Additionally, the dApp provides advanced position tracking, including essential risk management tools such as health factor, isolation mode, and efficiency mode.

Spark has its own token, SPK, which has not yet been introduced, and the TGE date has not been announced. SPK will be the governance token of Spark, which is the first SubDAO of Sky (formerly MakerDAO). Currently, a pre-farming airdrop event is live, allowing users to earn an airdrop by engaging in borrowing and lending on Spark.

1. Go to the Spark app and connect your wallet.
2. Navigate to your portfolio and select an asset from the available markets to deposit.
3. Enter the amount of the asset and make the deposit. Check the “collateral” box if you want to use the asset as collateral for borrowing.