DeFi lending rates draw attention as stablecoin yields and BTC borrowing costs diverge

DeFi lending markets continue to show a wide spread between stablecoin yields and cryptocurrency borrowing costs, with recent figures from Liquidium highlighting the gap between USDC and USDT supply returns and the current cost of borrowing Bitcoin and Ethereum.

As of 10 August 2026, Liquidium listed a USDC supply APY of 2.528% and a USDT supply APY of 2.824%. Borrowing rates were 4.182% for USDC and 4.421% for USDT.

Bitcoin and Ethereum borrowing rates were much lower, at 0.103% and 0.101% respectively.

The difference reflects how DeFi lending markets price assets based on supply, borrowing demand and liquidity. Stablecoin markets often attract borrowers seeking dollar-denominated liquidity, while borrowing rates for BTC and ETH can remain comparatively low depending on utilisation and available liquidity.

Analysts generally caution that headline APY figures can be misleading when viewed in isolation. A higher supply yield may be linked to tighter liquidity conditions or stronger borrowing demand, while a lower borrowing rate may come with different collateral requirements or liquidation risks.

One of the main drivers of rate changes in DeFi lending is utilisation, which measures how much of the supplied liquidity is currently borrowed. As utilisation rises, borrowing costs typically increase, and supplier yields often rise as well.

For lenders, the key considerations usually include liquidity, withdrawal conditions and the source of the yield. Borrowers tend to focus on collateral requirements, loan-to-value ratios, liquidation thresholds and repayment mechanics.

The figures also illustrate the distinction between supplying an asset and borrowing it. A quoted Bitcoin lending rate may refer to the yield earned by supplying BTC or the cost of borrowing BTC, which are separate markets with different dynamics.

Liquidium positions itself as a native cross-chain lending protocol supporting BTC, ETH, ICP and stablecoins. The platform also supports multi-collateral borrowing, including positions backed by native Bitcoin and native Ethereum.

DeFi lending remains a competitive market alongside platforms such as Aave, Compound and Morpho, with rates continuing to change as capital moves between protocols and borrower demand shifts.

For users comparing lending markets, the rate itself is only one part of the equation. Liquidity, collateral structure and liquidation risk often have a greater impact on the overall cost and risk of a lending or borrowing position.

The rates cited are variable and may change with market conditions.