Aave ETHloan: rates, LTV & how to borrow
Aave accepts Ethereum (ETH) as loan collateral through its on-chain markets. Ethereum is the second-largest cryptocurrency and powers most DeFi lending protocols. Widely accepted as collateral across both CeFi and DeFi platforms. On Aave you can borrow USDC, USDT, DAI, GHO against your ETH 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 ETH happens entirely in your own wallet: you supply ETH to the relevant market and draw your loan in the same transaction, with no account, KYC, or approval queue. Your ETH stays in audited smart contracts that only you can withdraw from, subject to the protocol's liquidation rules.
Ethereum'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 ETH 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 ETH on Aave
- 1Connect a self-custodial wallet (such as MetaMask or a hardware wallet) to Aave.
- 2Supply your Ethereum (ETH) as collateral to the relevant market.
- 3Borrow USDC, USDT, DAI, GHO against it, up to 80% loan-to-value — funds arrive in your wallet in the same transaction.
- 4Repay any time; interest accrues continuously. Keep your health factor safe so a drop in ETH does not trigger liquidation.
How Aave compares for ETH
8 platforms in our index accept ETH as collateral. On borrow rate, Aave ranks 3rd of 8, behind Nexo's 1.9–18.9%. The table below puts Aave next to its closest ETH alternatives so you can weigh rate against custody and LTV.
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Frequently asked questions
- Can I borrow against ETH on Aave?
- Yes. Aave accepts Ethereum (ETH) 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 ETH 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 ETH on Aave require KYC?
- No. Aave lets you borrow against ETH without identity verification.
- What happens if my ETH collateral drops in value?
- If your ETH 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.