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

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.

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.

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.

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.

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.

A decentralized borrowing and lending platform implementing Credit Account abstraction for composable leverage across DeFi protocols.

Silo creates risk-isolated lending markets through smart contracts, enabling peer-to-pool overcollateralized borrowing. Each market supports two assets: a unique token and a bridge asset. The system isolates risk to individual markets while concentrating liquidity in single pools.

Stormbit is a decentralized lending protocol on Arbitrum where borrowers post BTC or ETH as collateral and receive fixed-rate loans priced at origination. LTV is only checked at origination borrowers cannot be liquidated during the loan term. Lenders supply USDC into ERC-4626 vaults and earn yield from lending spreads plus hedging premiums. Idle capital earns additional yield via an Aave V3 hook.