Lending Protocol Comparison
The three dominant DeFi lending protocols control over $20 billion in total value locked. Aave V3, Compound V3 (Comet), and Spark (MakerDAO) each take fundamentally different approaches to overcollateralized lending. This interactive comparison breaks down their interest rate models, liquidation mechanics, architecture, and risk profiles.
At a Glance
Interest Rate Models Compared
All three protocols use a kinked interest rate curve: rates climb gradually below a target utilization, then spike sharply above it. Drag the slider to compare how each protocol prices borrowing at different utilization levels.
Supply Rate Calculator
Estimate your projected earnings by supplying assets to each protocol. Supply APY depends on the borrow rate and pool utilization — higher utilization means higher yields for lenders.
Liquidation Mechanics
When a borrower's collateral value drops below the required threshold, liquidators can repay part of the debt in exchange for discounted collateral. Each protocol handles this differently.
Architecture Philosophy
Aave V3: Pool-Based
A single LendingPool contract holds all assets. Users deposit any supported token as collateral and borrow any other. This cross-collateral design maximizes flexibility but increases systemic risk — a bad asset can affect the entire pool.
Compound V3: Comet
Each Comet market lends ONE base asset (e.g., USDC). Collateral tokens are deposited but cannot be borrowed. This isolated design is simpler to audit and reason about, but limits composability.
Spark: Aave V3 Fork + MakerDAO
Forked from Aave V3, Spark inherits pool-based architecture but is deeply integrated with MakerDAO. The D3M (Direct Deposit Module) pipes DAI liquidity directly from Maker vaults, offering competitive rates subsidized by the protocol.
Risk & Security
All three protocols rely on overcollateralization and external oracles. Their security postures differ in audit depth, bug bounty size, and historical track record.
Which Should You Use?
- You need flash loans for arbitrage or refinancing
- You want the widest asset selection (150+)
- You want to borrow multiple assets against mixed collateral
- You operate across multiple chains (Ethereum, Arbitrum, Polygon, Optimism, etc.)
- You want to mint the GHO stablecoin at a fixed rate
- You value E-Mode for correlated asset pairs (e.g., stETH/ETH)
- You prefer a simpler, more auditable architecture
- You want to earn COMP governance rewards on top of interest
- You only need to borrow USDC, USDT, or ETH
- You value isolated risk — one bad asset cannot sink the pool
- You want gas-efficient single-asset market operations
- You prioritize battle-tested, minimal smart contracts
- You want competitive DAI/USDS borrow rates subsidized by MakerDAO
- You are already in the MakerDAO ecosystem (holding MKR/DAI)
- You want to benefit from DSR-boosted supply yields
- You prefer governance via MKR with Maker's long track record
- You want Aave V3's features with MakerDAO's liquidity backing
- You want exposure to the Sky ecosystem (rebranded MakerDAO)