Bitcoin Borrowing Costs Vary Widely in DeFi Markets

The cost of borrowing against Bitcoin in decentralized finance (DeFi) ranges from 3.8% to 13.8% APR, depending on the loan size and LTV (loan-to-value). On the other hand, lending out Bitcoin pays much less, around 0% in DeFi or up to 4.7%-5.7% on centralized platforms.

The cheapest option for borrowing dollars against Bitcoin is Aave v3 on Arbitrum, with a variable rate of 3.82% and an LTV of 73%. Another option is Curve's crvUSD market, which has a rate of 3.66% and an LTV of 88%

On the other hand, lending out Bitcoin pays almost nothing in DeFi, with rates ranging from 0.18% to less than 0.01%. However, Nexo offers up to 4.7% on its Flexible Savings plan and 5.7% fixed-term on BTC.