Compound ETHloan: rates, LTV & how to borrow
Compound accepts Ethereum (ETH) as loan collateral through its on-chain markets. Ethereum is the second-largest cryptocurrency and powers most DeFi lending protocols. Widely accepted as collateral across both CeFi and DeFi platforms. On Compound you can borrow USDC, USDT, ETH, USDS against your ETH at 2.7–6% APR, up to a maximum loan-to-value of 83%, on a self-custody basis.
Because Compound is a non-custodial protocol, borrowing against ETH happens entirely in your own wallet: you supply ETH to the relevant market and draw your loan in the same transaction, with no account, KYC, or approval queue. Your ETH stays in audited smart contracts that only you can withdraw from, subject to the protocol's liquidation rules.
Ethereum's price volatility is the main driver of liquidation risk on a Compound loan, which is why the 83% maximum LTV exists. Borrowing well below it — and adding collateral or repaying when ETH falls — keeps your position out of the liquidation zone. Compound sources its rates on-chain, so the APR moves with market utilization.
How to borrow against ETH on Compound
- 1Connect a self-custodial wallet (such as MetaMask or a hardware wallet) to Compound.
- 2Supply your Ethereum (ETH) as collateral to the relevant market.
- 3Borrow USDC, USDT, ETH, USDS against it, up to 83% loan-to-value — funds arrive in your wallet in the same transaction.
- 4Repay any time; interest accrues continuously. Keep your health factor safe so a drop in ETH does not trigger liquidation.
How Compound compares for ETH
8 platforms in our index accept ETH as collateral. On borrow rate, Compound ranks 2nd of 8, behind Nexo's 1.9–18.9%. The table below puts Compound next to its closest ETH alternatives so you can weigh rate against custody and LTV.
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Frequently asked questions
- Can I borrow against ETH on Compound?
- Yes. Compound accepts Ethereum (ETH) as collateral, letting you borrow USDC, USDT, ETH against it at 2.7–6% APR, up to 83% loan-to-value.
- What is the interest rate for a Compound ETH loan?
- Compound's borrow APR is 2.7–6%. As a DeFi protocol, the exact rate is set algorithmically by market utilization and changes over time.
- Does borrowing against ETH on Compound require KYC?
- No. Compound lets you borrow against ETH without identity verification.
- What happens if my ETH collateral drops in value?
- If your ETH falls far enough that your loan-to-value crosses Compound's liquidation threshold, part of your collateral can be sold to repay the loan. Keep a buffer below the 83% maximum LTV to reduce that risk.