crypto.loans

Aave wstETHloan: rates, LTV & how to borrow

Can I borrow against wstETH on Aave?
Yes — you can borrow against Wrapped Staked ETH (Lido) (wstETH) on Aave at 4–8% APR with up to 80% LTV, on a self-custody basis with no KYC.
Borrow on Aave

Aave accepts Wrapped Staked ETH (Lido) (wstETH) as loan collateral through its on-chain markets. Lido's wstETH lets you borrow against staked ETH without unstaking, earning staking yield while using it as loan collateral. On Aave you can borrow USDC, USDT, DAI, GHO against your wstETH at 4–8% APR, up to a maximum loan-to-value of 80%, on a self-custody basis.

Because Aave is a non-custodial protocol, borrowing against wstETH happens entirely in your own wallet: you supply wstETH to the relevant market and draw your loan in the same transaction, with no account, KYC, or approval queue. Your wstETH stays in audited smart contracts that only you can withdraw from, subject to the protocol's liquidation rules.

Wrapped Staked ETH (Lido)'s price volatility is the main driver of liquidation risk on a Aave loan, which is why the 80% maximum LTV exists. Borrowing well below it — and adding collateral or repaying when wstETH falls — keeps your position out of the liquidation zone. Aave sources its rates on-chain, so the APR moves with market utilization.

How to borrow against wstETH on Aave

  1. 1Connect a self-custodial wallet (such as MetaMask or a hardware wallet) to Aave.
  2. 2Supply your Wrapped Staked ETH (Lido) (wstETH) as collateral to the relevant market.
  3. 3Borrow USDC, USDT, DAI, GHO against it, up to 80% loan-to-value — funds arrive in your wallet in the same transaction.
  4. 4Repay any time; interest accrues continuously. Keep your health factor safe so a drop in wstETH does not trigger liquidation.

How Aave compares for wstETH

4 platforms in our index accept wstETH as collateral. On borrow rate, Aave ranks 2nd of 4, behind Compound's 2.7–6%. The table below puts Aave next to its closest wstETH alternatives so you can weigh rate against custody and LTV.

CompoundDeFi
Borrow APR
2.7–6%
Max LTV
83%
KYC
No KYC
Custody
Self-custody
Apply
AaveDeFi
Borrow APR
4–8%
Max LTV
80%
KYC
No KYC
Custody
Self-custody
Apply
MorphoDeFi
Borrow APR
4–9%
Max LTV
86%
KYC
No KYC
Custody
Self-custody
Apply
MakerDAO (Sky)DeFi
Borrow APR
5–9%
Max LTV
80%
KYC
No KYC
Custody
Self-custody
Apply

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Frequently asked questions

Can I borrow against wstETH on Aave?
Yes. Aave accepts Wrapped Staked ETH (Lido) (wstETH) as collateral, letting you borrow USDC, USDT, DAI against it at 4–8% APR, up to 80% loan-to-value.
What is the interest rate for a Aave wstETH loan?
Aave's borrow APR is 4–8%. As a DeFi protocol, the exact rate is set algorithmically by market utilization and changes over time.
Does borrowing against wstETH on Aave require KYC?
No. Aave lets you borrow against wstETH without identity verification.
What happens if my wstETH collateral drops in value?
If your wstETH falls far enough that your loan-to-value crosses Aave's liquidation threshold, part of your collateral can be sold to repay the loan. Keep a buffer below the 80% maximum LTV to reduce that risk.

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