crypto.loans

Morpho ETHloan: rates, LTV & how to borrow

Can I borrow against ETH on Morpho?
Yes — you can borrow against Ethereum (ETH) on Morpho at 4–9% APR with up to 86% LTV, on a self-custody basis with no KYC.
Borrow on Morpho

Morpho 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 Morpho you can borrow USDC, USDT, ETH, DAI against your ETH at 4–9% APR, up to a maximum loan-to-value of 86%, on a self-custody basis.

Because Morpho 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 Morpho loan, which is why the 86% maximum LTV exists. Borrowing well below it — and adding collateral or repaying when ETH falls — keeps your position out of the liquidation zone. Morpho sources its rates on-chain, so the APR moves with market utilization.

How to borrow against ETH on Morpho

  1. 1Connect a self-custodial wallet (such as MetaMask or a hardware wallet) to Morpho.
  2. 2Supply your Ethereum (ETH) as collateral to the relevant market.
  3. 3Borrow USDC, USDT, ETH, DAI against it, up to 86% 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 ETH does not trigger liquidation.

How Morpho compares for ETH

8 platforms in our index accept ETH as collateral. On borrow rate, Morpho ranks 4th of 8, behind Nexo's 1.9–18.9%. The table below puts Morpho next to its closest ETH alternatives so you can weigh rate against custody and LTV.

NexoCeFi
Borrow APR
1.9–18.9%
Max LTV
50%
KYC
Required
Custody
Third-party
Apply
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

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Frequently asked questions

Can I borrow against ETH on Morpho?
Yes. Morpho accepts Ethereum (ETH) as collateral, letting you borrow USDC, USDT, ETH against it at 4–9% APR, up to 86% loan-to-value.
What is the interest rate for a Morpho ETH loan?
Morpho's borrow APR is 4–9%. As a DeFi protocol, the exact rate is set algorithmically by market utilization and changes over time.
Does borrowing against ETH on Morpho require KYC?
No. Morpho 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 Morpho's liquidation threshold, part of your collateral can be sold to repay the loan. Keep a buffer below the 86% maximum LTV to reduce that risk.

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