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BlockFi vs AAVE

BlockFi vs AAVE

Andrew Chen
Fact Checked
August 25, 2022

Summary: AAVE is the superior crypto interest account and lending account because it is decentralized, and offers higher yields and lower fees.

After the insolvency of Celsius, which is another centralized lending platform, it has become clear that decentralized money-markets live AAVE are the safer way to earn interest on digital assets.

Table of Contents

Platform Highlights

  • Deployed on 8 different EVM Networks.
  • Highest lending protocol by TVL over $12B.
  • High stablecoin yields and audited contracts.

BlockFi and AAVE Overview

BlockFi is a centralized lending platform that offers over 15 cryptocurrencies and up to 15% annual interest on digital assets. It is the largest CeFi crypto interest account in the world, with over $3 billion in cryptocurrencies deposited on its platform.

AAVE on the other hand is a decentralized lending application that is deployed on Ethereum, Avalanche, Optimism, Arbitrum, Polygon, and other networks. AAVE is the largest liquidity protocol and lending platform in the world with over $9 billion in assets locked across 13 different cryptos.

BlockFi vs AAVE

BlockFi
AAVE vs BlockFi

AAVE
Available Tokens BTC, ETH, SOL, AVAX, ADA, USDC + 10 more WBTC, ETH, AVAX, USDC, USDT, FTM + 6 more
BlockFi Interest Rates Up to 15% APY Up to 10% APY
Available Networks Centralized Server Ethereum, Avalanche, Polygon, Harmony, Fantom + 5 more.
Fees $25 account withdrawal fee $5 deposit or withdrawal fee
Decentralized Image Image
iOS/Mobile App Image Image
Stablecoin Products Image Image
User Experience Image Image
Safety Image Image
Overall Best Image Image
Visit Website Visit BlockFi Visit AAVE

AAVE vs BlockFi: Best Crypto Interest Rate

BlockFi offers slightly higher yields than AAVE when you compare major coins like Bitcoin, Ethereum, AVAX, USDC, AAVE, and other high market capitalization assets. That said, for the higher yield on BlockFi, you are also taking on considerably more risk, so you will need to weigh that up in your decision-making.

AAVE Interest Rate vs BlockFi's
Lending and Borrowing rates on AAVE's Avalanche Market.

Crypto Interest Accounts: Decentralized vs Centralized

Since the collapse of Terra (LUNA), Three Arrows Capital, Celsius, Voyages, and most recently BlockFi - it is clear that the decentralized model for crypto apps is superior. The main issue with centralized lending platforms is that their agreements and yield-generating methods are not verifiable on-chain.

This means that they could be taking excessive risk and be over-levered, which could result in an implosion like the recent Celsius debacle. Centralized platforms also have the ability to arbitrarily pause withdrawals, which restricts users' access to funds. Decentralized applications do not have this functionality and require governance from token holders.

BlockFi vs AAVE

Former Bitcoin Maximalist turned multi-chain enjoyer. I hunt down the best yields across AVAX, Solana, Fantom and other networks.

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