DeFi Platforms Offer Attractive Rates for Bitcoin Lending

Bitcoin holders have a new way to generate income: lending their BTC in DeFi platforms. The rates are attractive, ranging from 0% to around 5.7%. However, lenders can expect lower returns due to low demand for borrowing Bitcoin itself.

The cheapest DeFi borrow option is currently Aave v3 (Arbitrum) at a variable rate of up to 73% LTV, while the lowest lender rate is offered by SALT with an APR of 7.49% at 30% LTV and 1 year term.

Nexo offers flexible savings rates of up to 4.7%, but this requires holding its NEXO token. Centralized lending platforms like Ledn and Arch offer higher yields, but come with risks such as frozen assets in case the platform fails.