crypto.loans

Aave BTCloan: rates, LTV & how to borrow

Can I borrow against BTC on Aave?
Yes — you can borrow against Bitcoin (BTC) on Aave at 4–8% APR with up to 80% LTV, on a self-custody basis with no KYC.
Borrow on Aave

Aave accepts Bitcoin (BTC) as loan collateral through its on-chain markets. Bitcoin is the largest cryptocurrency by market cap and the most widely accepted collateral for crypto-backed loans. On Aave you can borrow USDC, USDT, DAI, GHO against your BTC at 4–8% APR, up to a maximum loan-to-value of 80%, on a self-custody basis.

Because Aave is a non-custodial protocol, borrowing against BTC happens entirely in your own wallet: you supply BTC to the relevant market and draw your loan in the same transaction, with no account, KYC, or approval queue. Your BTC stays in audited smart contracts that only you can withdraw from, subject to the protocol's liquidation rules.

Bitcoin's price volatility is the main driver of liquidation risk on a Aave loan, which is why the 80% maximum LTV exists. Borrowing well below it — and adding collateral or repaying when BTC falls — keeps your position out of the liquidation zone. Aave sources its rates on-chain, so the APR moves with market utilization.

How to borrow against BTC on Aave

  1. 1Connect a self-custodial wallet (such as MetaMask or a hardware wallet) to Aave.
  2. 2Supply your Bitcoin (BTC) as collateral to the relevant market.
  3. 3Borrow USDC, USDT, DAI, GHO against it, up to 80% loan-to-value — funds arrive in your wallet in the same transaction.
  4. 4Repay any time; interest accrues continuously. Keep your health factor safe so a drop in BTC does not trigger liquidation.

How Aave compares for BTC

7 platforms in our index accept BTC as collateral. On borrow rate, Aave ranks 2nd of 7, behind Nexo's 1.9–18.9%. The table below puts Aave next to its closest BTC alternatives so you can weigh rate against custody and LTV.

NexoCeFi
Borrow APR
1.9–18.9%
Max LTV
50%
KYC
Required
Custody
Third-party
Apply
AaveDeFi
Borrow APR
4–8%
Max LTV
80%
KYC
No KYC
Custody
Self-custody
Apply
YouHodlerCeFi
Borrow APR
5.9–12%
Max LTV
90%
KYC
Required
Custody
Third-party
Apply
LednCeFi
Borrow APR
9.25–11.9%
Max LTV
50%
KYC
Required
Custody
Third-party
Apply

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Frequently asked questions

Can I borrow against BTC on Aave?
Yes. Aave accepts Bitcoin (BTC) as collateral, letting you borrow USDC, USDT, DAI against it at 4–8% APR, up to 80% loan-to-value.
What is the interest rate for a Aave BTC loan?
Aave's borrow APR is 4–8%. As a DeFi protocol, the exact rate is set algorithmically by market utilization and changes over time.
Does borrowing against BTC on Aave require KYC?
No. Aave lets you borrow against BTC without identity verification.
What happens if my BTC collateral drops in value?
If your BTC falls far enough that your loan-to-value crosses Aave's liquidation threshold, part of your collateral can be sold to repay the loan. Keep a buffer below the 80% maximum LTV to reduce that risk.

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