Compound LINKloan: rates, LTV & how to borrow
Compound accepts Chainlink (LINK) as loan collateral through its on-chain markets. Chainlink's LINK token is accepted as collateral on Aave and select CeFi platforms. On Compound you can borrow USDC, USDT, ETH, USDS against your LINK 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 LINK happens entirely in your own wallet: you supply LINK to the relevant market and draw your loan in the same transaction, with no account, KYC, or approval queue. Your LINK stays in audited smart contracts that only you can withdraw from, subject to the protocol's liquidation rules.
Chainlink'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 LINK 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 LINK on Compound
- 1Connect a self-custodial wallet (such as MetaMask or a hardware wallet) to Compound.
- 2Supply your Chainlink (LINK) 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 LINK does not trigger liquidation.
How Compound compares for LINK
2 platforms in our index accept LINK as collateral. On borrow rate, Compound ranks 1st of 2 — the cheapest LINK loan we track. The table below puts Compound next to its closest LINK alternatives so you can weigh rate against custody and LTV.
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Frequently asked questions
- Can I borrow against LINK on Compound?
- Yes. Compound accepts Chainlink (LINK) 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 LINK 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 LINK on Compound require KYC?
- No. Compound lets you borrow against LINK without identity verification.
- What happens if my LINK collateral drops in value?
- If your LINK 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.