Aave V3 vs Compound V3
Side-by-side lending rate comparison
| Asset | Chain | Supply Aave V3 | Borrow Aave V3 | Supply Compound V3 | Borrow Compound V3 | Aave V3 | Compound V3 |
|---|---|---|---|---|---|---|---|
 WETH |  Ethereum | 1.61% | 2.07% | 1.30% | 1.72% | 1.61% | 1.30% |
 USDC | Ethereum | 3.53% | 4.25% | 3.11% | 3.90% | 3.53% | 3.11% |
 USDT | Ethereum | 3.24% | 3.96% | 3.04% | 3.85% | 3.24% | 3.04% |
| WETH |  Arbitrum | 0.81% | 1.44% | — | — | 0.81% | — |
| USDC | Arbitrum | 3.19% | 3.97% | 2.50% | 3.43% | 3.19% | 2.50% |
| USDT | Arbitrum | 2.95% | 3.82% | 2.25% | 3.24% | 2.95% | 2.25% |
 USDS | Ethereum | 0.69% | 5.63% | — | — | 0.69% | — |
| USDC |  Base | — | — | 3.20% | 3.97% | — | 3.20% |
| USDS | Base | — | — | — | — | — | — |
| WETH | Base | — | — | 2.26% | 2.51% | — | 2.26% |
Architecture Comparison
Aave V3
Aave V3 uses a pooled liquidity model where all depositors share a single lending pool per asset. It supports Efficiency Mode (E-Mode) for correlated asset pairs, enabling higher capital efficiency with lower liquidation thresholds.
Compound V3
Compound V3 (Comet) uses a single-borrowable-asset model where each market is isolated around one debt token. This simplifies risk management by eliminating cross-asset contagion within each market.
Risk Comparison
Aave V3
Aave V3 benefits from the largest TVL in DeFi lending, extensive security audits, and a mature governance system. Its pooled model means risk is shared across all participants.
Compound V3
Compound V3's isolated market design limits contagion risk. Each Comet market can only have one borrowable asset, making risk parameters clearer and easier to evaluate.
Which Protocol Should You Choose?
- Choose Aave V3 if you are users seeking deep liquidity, a wide asset selection, and battle-tested smart contracts.
- Choose Compound V3 if you are users who prefer simpler market mechanics and transparent, isolated risk exposure.
- Compare rates above to see which protocol currently offers better rates for your specific asset and chain.
For real-time monitoring of your positions on either protocol, DeFi Monitor provides automated health factor alerts via Telegram and Discord.
Compare Aave V3 and Compound V3 lending protocols — architecture, risk, rates, and TVL.
Aave V3 and Compound V3 represent different approaches to decentralized lending. Aave V3 uses a pooled liquidity model where all depositors share a single lending pool per asset. It supports Efficiency Mode (E-Mode) for correlated asset pairs, enabling higher capital efficiency with lower liquidation thresholds.
In contrast, Compound V3 (Comet) uses a single-borrowable-asset model where each market is isolated around one debt token. This simplifies risk management by eliminating cross-asset contagion within each market.
With $12.2B in TVL across 2 chains, Aave V3 offers 60 markets, while Compound V3 has $1.3B in TVL with 9 markets across 3 chains. Aave V3 is best suited for users seeking deep liquidity, a wide asset selection, and battle-tested smart contracts. Compound V3 is better for users who prefer simpler market mechanics and transparent, isolated risk exposure.