List of Decentralised Borrowing & Lending projects on Polygon (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.

Liquidity is a decentralised lending product in which users deposit stablecoins into pools that fund pay-in and pay-out settlement before traditional payment rails complete. Deposits are matched against confirmed receivables from acquirers, banks, and pay-in providers through audited, non-custodial vault contracts, with capital recycling roughly every 72 hours as underlying transactions settle. Depositors receive chain-native receipt tokens representing their pool position and earn yield sourced from real payment volume rather than fixed rates.

Folks Finance's Algorand application provides decentralized lending, borrowing, liquid staking, and trading services on the Algorand blockchain. Users can deposit assets to earn yield, borrow against collateral, stake ALGO through xALGO, and access DEX aggregation through Folks Router.

Folks Finance's cross-chain lending platform enables users to deposit and borrow assets across multiple blockchain networks. The platform maintains native assets on their respective chains while providing unified liquidity management.

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.

Nexo Platform is a licensed crypto neobank that combines interest-bearing savings accounts, crypto-backed credit lines, a multi-asset exchange, and a dual-mode payment card in a single application. Users earn daily compound interest through flexible or fixed-term deposits, borrow cash or stablecoins without liquidating holdings, and manage portfolios across multiple digital asset classes. The platform also offers zero-interest credit lines and dual-currency investment products for eligible users.

BiFi Cross-chain is a decentralized lending protocol using Bifrost cross-chain infrastructure to enable native asset deposits and borrowing across blockchain networks without token wrapping. Validator-verified transactions maintain decentralized operations and real-time rate adjustments.

Legacy BiFi is the original decentralized lending platform enabling users to supply assets, earn interest, and borrow against collateral on supported chains using smart contracts.

A receivables financing platform that tokenizes trade invoices and business receivables, converting them into blockchain-based digital instruments. The platform provides working capital financing for small and medium enterprises by connecting businesses with decentralized liquidity providers, conducting due diligence on invoices, and managing asset custody with on-chain transparency.

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.

Everst Protocol provides lending and liquidation infrastructure for tokenized equities through dual-oracle aggregation and hybrid liquidation routing. The system enables borrowing, shorting, and hedging of tokenized stocks while managing liquidation through on-chain auctions or off-chain broker venues to minimize slippage during volatile equity market periods.

Hodl Hodl Lend is a P2P Bitcoin lending platform that enables users to borrow and lend Bitcoin directly with each other. The platform operates separately from the main trading marketplace and focuses on decentralized lending services.

Lendasat Lending Platform is a peer-to-peer marketplace that connects Bitcoin holders seeking liquidity with lenders seeking yield. Borrowers lock Bitcoin as collateral in a 2-of-3 multisig escrow shared with a matched lender and Lendasat as a neutral arbitrator, receiving stablecoin or fiat loan proceeds through methods including bank transfer, stablecoins, or a virtual card. Lenders set their own rates, amounts, and durations, and are paid interest while a Bitcoin price oracle monitors collateral value to trigger margin calls or automatic liquidation. Both borrower and lender access points are part of the same underlying escrow and matching protocol, so bank transfer, stablecoin, and card disbursement are payout options within one lending product rather than separate offerings.

WeFi is a decentralized money market for leverage trading. Users lend to earn yield or borrow to create leveraged positions across crypto and select real‑world assets. Assets bought via connected DEXs are locked until loans are repaid. The platform features AAVE integration, leverage vaults, portfolio tools, staking, and a bridge.