Crypto lending protocols act like decentralized banks, allowing users to deposit their idle funds and earn passive income in the form of APR. When users aren’t actively trading or using their crypto, these platforms offer a secure way to put assets to work instead of letting them sit idle in a wallet.
Here’s how it works: users deposit tokens (like stablecoins or major cryptocurrencies) into a lending pool. These pooled funds are then made available to borrowers who put up collateral, often worth more than what they’re borrowing, to ensure safety for lenders. In return, depositors earn a small but steady yield, similar to how traditional banks offer interest on savings accounts.
[Also read: Best Aptos Wallets]
While you can always lend assets and keep them safe in these protocols, some users typically lend one asset and borrow another to participate in the DeFi ecosystem of the chain. For example, someone with stablecoins can lend them here for a higher APR and borrow the native tokens, such as APT, in the case of Aptos, so the APR is still positive. The borrowed asset can be liquid staked elsewhere to participate in other protocols.
Some of the biggest lending protocols across all chains include Aave, Morpho, Compound Finance, and Kamino Finance. On Aptos, too, some of the lending protocols have recently been offering a decent APR to lenders. Let’s check them out.
Aptos Lending Protocol List – Lend and borrow APT, USDT, USDC
Echo Protocol
Echo is the largest lending and borrowing protocol on Aptos, serving as the BTCfi pillar for the network. It is a Bitcoin staking and liquidity layer, offering both strategy and lending platforms.
Echo Protocol also has liquid staking, where staked APT gives you eAPT. This can then be lent in the lending protocol of Echo to keep it safe. At the time of writing this, Echo has over $314m in TVL.
Links: Echo Protocol | Twitter
Aries Markets
Aries Markets is a decentralised margin trading protocol. Aries has been on Aptos since the early DeFi days and has been the leading lending protocol for over a year. Like Echo, Aries is part of the Aptos LFM program, which provides necessary help, including security measures and audits, as it handles hundreds of millions in TVL.
Apart from lending and borrowing, Aries also offers leverage trading and a full DeFi Suite where you can directly participate in the different yield opportunities across the Aptos DeFi ecosystem.
Links: Aries Markets | Twitter
Echelon Market
I consider Echelon my Aptos bank since nearly all the idle funds in my Aptos wallet are transferred to the Echelon lending section. After all, it’s that easy. One of the best interfaces that anyone can use, Echelon has also been rewarding users with points for the amount lent and borrowed.
Echelon is the latest entrant into the Aptos LFM program, and while that is big news, the protocol’s integrations and partnerships are the bigger picture here. Echelon offers isolated pools, including deposits available for GUI, MKL, LSD, and others. Also, Thala’s xLPT is supported, and users can get boosted APRs for these LP tokens.
Echelon boasts a TVL of approximately $127m at the time of writing, and given the outlook of its features and roadmap, it seems Echelon is headed to be one of the top lending protocols on Aptos. Echelon is backed by Amber, Aptos, Thala, Laser Digital, Interop, 280 Capital, Cypher Capital, Selini, Serafund, Re7Capital, Saison Capital, and Web3port.
Links: Echelon Market | Twitter
Superposition
Although not actively social, Superposition has been offering a sleek and easy lending protocol for Aptos users, providing decent APRs. Tribe Capital, Kraken Ventures, Saison Capital, Cypher Capital, Peer VC, VentureSouq, Kestrel, MV Global, Andromeda Capital, and Mozaik Capital back superposition.
Additionally, points are being offered to both lenders and borrowers. If a TGE for Superposition occurs soon, point gainers could be airdropped. Therefore, staying involved and lending assets may not be a bad decision.
Links: Superposition | Twitter
Aave
Aave is the largest DeFi protocol in the whole of crypto, and thus keeps the lending protocol category on top, with about $32b in TVL. Aave offers its platform on 17 chains, and all of them are EVM chains. Aptos is the first non-EVM chain that Aave is expanding to, and currently, it is on Testnet.
The section will be updated when Aave goes live on the Aptos mainnet.
[Read: Best Aptos NFT marketplaces]
What to look for in a lending protocol?
When choosing a crypto lending protocol, it’s essential to evaluate both safety and usability. Here’s what to look for:
Security and Audits
Always check if reputable firms have audited the protocol’s smart contracts. Audits reduce risk, but also look for bug bounty programs, time in the market, and whether the protocol has experienced any past exploits.
Collateralization & Liquidation Mechanism
Understand how the protocol handles collateral. Is it overcollateralized (like most DeFi platforms), or undercollateralized (riskier)? Also, check how and when liquidations are triggered, as it shows how well the platform protects both lenders and borrowers.
Yield/APR Stability
Look at the interest rates (APR) for lenders. High rates might seem attractive, but could be unsustainable. Protocols with stable, predictable yields, especially on assets like stablecoins, are usually more reliable.
Supported Assets
Make sure the protocol supports high-quality assets (like APT, wBTC, xBTC, aBTC, wETH, stablecoins, and more). Avoid platforms heavy on low-liquidity or highly volatile tokens unless you understand the risks.
Total Value Locked (TVL) & Liquidity
A higher TVL usually means greater trust and deeper liquidity, which reduces slippage and improves borrowing/lending efficiency. It’s also a good signal of protocol adoption.
In the end, it is also about the community using it and the user experience they share, so you need to consider their social profiles, replies, and the Discord community.
