List of Decentralised Borrowing & Lending projects on Arbitrum (2026)

Sky Money is a self-custodial yield app that lets users earn on stablecoins through the Sky Savings Rate and curated lending vaults. Depositing into the savings module mints a savings token that grows in value as yield accrues, while vaults allocate stablecoin deposits across lending markets. Users can also stake the governance token to earn rewards, borrow stablecoins against the staked position, and delegate voting power. Built-in conversion moves between the protocol's stablecoins and legacy tokens at fixed rates, alongside trading between ecosystem tokens. The app runs across multiple blockchains, and users keep full control of deposited funds throughout.

ERC4626-compliant lending protocol enabling users to deposit assets into the Liquidity Layer via fTokens to earn sustainable yields with gas-optimized operations.

Collateralized borrowing protocol implementing single-asset vaults with liquidation thresholds up to 95% LTV and penalties as low as 0.1%, utilizing tick-based position management and range-based liquidation mechanisms.

Specialized protocol enabling direct deleveraging of leveraged stETH/ETH positions at a 1:1 rate with Lido through short-term loan strategies, reducing costs compared to market deleveraging.

ChangeNOW Exchange is a decentralised exchange that lets users swap cryptocurrencies without creating an account. It matches trades using liquidity sourced from multiple venues and offers both fixed and floating rate options for each swap. The service also includes a fiat-to-crypto on-ramp so users can acquire assets using traditional payment methods, trading directly from their own wallets across multiple supported blockchains.

Compound v2 provides pooled liquidity markets enabling users to supply assets as collateral and borrow multiple asset types. The system uses cTokens as receipt tokens representing supplied assets, with interest rates determined algorithmically based on utilization. Users can borrow any supported asset against their collateral while earning interest on supplied funds.

Compound III provides single-asset borrowing markets with isolated collateral pools for enhanced security and capital efficiency. Each deployment supports borrowing one base asset using approved collateral types that remain user property unless liquidated. The protocol features reduced gas costs, lower liquidation penalties, and algorithmic interest rates while eliminating pooled-risk across multiple borrowable assets.

Nostra is a decentralized finance application on Starknet that combines lending and borrowing, liquidity pools, token swaps, and cross-chain bridging in one connected-wallet experience. Users supply and borrow assets against tokenized collateral positions using risk tiers, efficiency modes, and dynamic interest rates, with flash loans and automated liquidation protection built in. The platform also runs automated market maker pools with verified, experimental, volatile, stable, and degen risk designs that feed liquidity into the swap function for token exchanges. A bridging module, powered by a cross-chain interoperability partner, moves assets between Starknet and other blockchain networks.

Balanced is a cross-chain DeFi platform providing a money market and exchange across multiple blockchains. The money market enables users to supply crypto assets to earn variable-rate interest and borrow against cross-chain collateral. The exchange aggregates prices from multiple decentralized exchanges via SODAX Intents, settling cross-chain swaps within seconds. The bnUSD stablecoin is accessible as a fixed-rate borrowable asset, backed by over-collateralized crypto collateral.

Venus Protocol operates algorithmic money markets enabling over-collateralized lending and borrowing through core and isolated pool architectures. The system calculates interest rates based on supply and demand dynamics while maintaining collateral ratios through automated liquidation mechanisms. Risk management separates assets into distinct pools with independent parameters including collateral factors and rate models. Protocol revenue distributes to XVS stakers through Venus Prime using non-transferable soulbound tokens that boost yields based on staking duration and market participation. Users mint VAI stablecoin against supplied collateral with peg stability maintained through direct swaps between VAI and other stablecoins at fixed ratios.

PWN Protocol is a permissionless peer-to-peer lending protocol that lets users borrow and lend using virtually any digital asset as collateral. Loans are set up with fixed terms negotiated between counterparties, and because pricing is oracle-less, collateral cannot be seized through price-based liquidation, only through missed repayment. The protocol supports several access modes, from simplified fixed-term note strategies to curated markets and a fully customizable peer-to-peer marketplace, and integrates with a range of external DeFi lending and yield venues to source liquidity and collateral options.

USDaLend provides decentralized lending services backed by USDa credit lines, allowing users to lend and borrow Bitcoin-backed stablecoins with stable and transparent rates across multiple blockchain networks.

Avalon DeFi Lending provides decentralized liquidity protocols for Bitcoin Liquid Staking tokens and Bitcoin derivatives, creating yield opportunities for Bitcoin holders through isolation pool mechanisms.

Radiant Protocol provides cross-chain lending and borrowing infrastructure using LayerZero messaging protocol, enabling users to deposit collateral on one blockchain and borrow assets on different chains. The system utilizes dynamic liquidity provisioning where users lock RDNT liquidity tokens to earn protocol fees and activate emissions eligibility.

Upshift is a vault platform that lets institutions and partner protocols offer onchain yield strategies. Deposits mint receipt tokens, curators deploy the assets under an onchain policy engine built on August, and net asset value accrues back to depositors. Its DeFi Yield vaults allocate deposits to curated strategies across multiple chains, while Vault-as-a-Service lets partner protocols run the same vaults under their own brand. RWA Clear funds instant redemptions of tokenized real-world assets from an LP pool that earns spread fees and lending yield, and developers can integrate through an SDK, REST API, CLI, and MCP server.

Spark is a decentralized protocol providing stablecoin savings vaults and a non-custodial lending market, powered by automated cross-chain capital deployment infrastructure. Savings vaults accept multiple stablecoins and ETH, with yield generated by allocating capital across DeFi protocols, CeFi venues, and real-world assets via the Spark Liquidity Layer. SparkLend enables borrowing of USDS and USDC at governance-set rates against curated collateral including ETH and liquid staking tokens, deployed across multiple EVM-compatible networks.

Pike Markets is a decentralized money market protocol featuring integrated DEX functionality, multi-tier governance, and cross-chain capabilities. The system supports customizable lending markets with tailored risk parameters through modular architecture and dual-oracle pricing infrastructure.

Gearbox Protocol is a decentralized borrowing and lending protocol that pairs passive lending pools with leveraged Credit Accounts. Lenders deposit assets into pools and receive share tokens that accrue the interest paid by borrowers. Borrowers open Credit Accounts that hold collateral and debt and execute approved actions on integrated protocols, with solvency checks and liquidations protecting the pool. Curators can deploy their own markets on the same infrastructure, setting supported assets, debt ceilings, rates, and oracle rules.

Pareto Credit Vaults facilitate institutional on-chain lending through smart contract-based credit facilities connecting vetted borrowers with liquidity providers. The system enables curators to structure customizable loan terms including fixed or variable rates, redemption cycles, and tranche configurations while automating interest distribution and fund utilization tracking. Borrowers receive capital for strategies including market making, derivatives trading, and arbitrage, while lenders earn yields through direct credit exposure with KYC-verified counterparties and curator oversight.

Hodl Hodl Lend is a non-custodial peer-to-peer lending platform that lets users borrow and lend using Bitcoin as collateral. Loans are secured through 2-of-3 multisig escrow contracts, with the borrower depositing Bitcoin collateral that is released once the loan is repaid, so neither party's funds pass through the platform's custody. The service requires no identity verification and supports several stablecoins and Bitcoin-pegged assets as loan currencies.

Silo is a decentralized lending protocol that lets users borrow against, and lend, virtually any onchain token through isolated, risk-contained markets. Each market pairs a specific asset with a bridge asset so that risk in one market cannot spread to others, and lenders can access vaults that pool deposits across several isolated markets for diversified yield. Borrowers pay variable interest based on utilization, while lenders earn from borrower interest, liquidation fees, and upside on collateral received during liquidations.

Stormbit is non-custodial settlement software for tokenized-asset transactions, used by holders of assets such as BTC or ETH and by capital providers who fund positions. Holders select a program, Harvest for income above a chosen price, Accumulate for a paid commitment to buy at a chosen price, or Prime for fixed-term credit under a protective floor and cap, and a counterparty prices the terms before the holder authorizes settlement from their own wallet. Prime blocks price-based liquidation during the protected term, opening it permissionlessly only after maturity plus four hours. Capital providers fund these programs through vaults, depositing into epoch-based pools and receiving a share redeemable as positions settle, with variable, unguaranteed returns.

Bulla Banker is a Web3 accounting and invoicing application that lets businesses, DAOs, and individuals create, send, and pay invoices onchain. It tokenizes invoices as onchain records, enabling wallet-to-wallet invoicing, batch payments, and peer-to-peer loans. Companies use it to manage business and personal accounts without relying on traditional banking rails.