MakerDAO (Sky) ETHloan: rates, LTV & how to borrow
MakerDAO (Sky) 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 MakerDAO (Sky) you can borrow USDS, DAI against your ETH at 5–9% APR, up to a maximum loan-to-value of 80%, on a self-custody basis.
Because MakerDAO (Sky) 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 MakerDAO (Sky) 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. MakerDAO (Sky) sources its rates on-chain, so the APR moves with market utilization.
How to borrow against ETH on MakerDAO (Sky)
- 1Connect a self-custodial wallet (such as MetaMask or a hardware wallet) to MakerDAO (Sky).
- 2Supply your Ethereum (ETH) as collateral to the relevant market.
- 3Borrow USDS, DAI 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 MakerDAO (Sky) compares for ETH
8 platforms in our index accept ETH as collateral. On borrow rate, MakerDAO (Sky) ranks 5th of 8, behind Nexo's 1.9–18.9%. The table below puts MakerDAO (Sky) 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 MakerDAO (Sky)?
- Yes. MakerDAO (Sky) accepts Ethereum (ETH) as collateral, letting you borrow USDS, DAI against it at 5–9% APR, up to 80% loan-to-value.
- What is the interest rate for a MakerDAO (Sky) ETH loan?
- MakerDAO (Sky)'s borrow APR is 5–9%. As a DeFi protocol, the exact rate is set algorithmically by market utilization and changes over time.
- Does borrowing against ETH on MakerDAO (Sky) require KYC?
- No. MakerDAO (Sky) 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 MakerDAO (Sky)'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.