Home Academy Compare Aave vs MakerDAO: DeFi Lending Giants Compared
Lending

Aave vs MakerDAO: Which is Better?

Compare Aave and MakerDAO, two pillars of DeFi lending. Discover differences in stablecoin issuance, borrowing mechanics, governance, and risk management.

Updated 2026-03-08 Lending Comparison
AA
Aave (AAVE)
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MK
MakerDAO (MKR)
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Aave vs MakerDAO at a Glance

Feature
AAVE
MKR
Core Function
Multi-asset lending and borrowing protocol for a wide range of crypto assets
Stablecoin issuance protocol; users deposit collateral to mint the DAI stablecoin
Stablecoin
Launched GHO, an overcollateralized stablecoin that can be minted by Aave borrowers
DAI is the flagship product, one of the largest decentralized stablecoins by market cap
Borrowable Assets
Users can borrow dozens of different crypto assets from liquidity pools
Users can only borrow DAI (or USDS) against their deposited collateral
Collateral Types
Supports a broad range of crypto tokens as collateral across multiple chains
Accepts crypto assets and real-world assets (RWAs) including US Treasuries as collateral
Interest Rates
Variable and stable rates determined by supply and demand in lending pools
Stability fees (borrowing rates) set by MKR governance for each collateral type
Governance
AAVE token holders vote on protocol proposals and risk parameters
MKR token holders govern the protocol, setting stability fees, collateral types, and debt ceilings
Revenue Model
Earns a spread on lending rates plus flash loan fees and GHO minting interest
Earns stability fees from DAI borrowers and liquidation penalties
Multi-Chain Presence
Deployed on Ethereum, Polygon, Arbitrum, Optimism, Avalanche, Base, and more
Primarily Ethereum-based; DAI is bridged to other chains but core protocol is on Ethereum
Real-World Assets
Primarily focused on on-chain crypto assets as collateral
Has integrated real-world assets including US Treasuries and institutional credit as collateral
Lending Protocol

What is Aave?

Aave is a decentralized, non-custodial liquidity protocol that allows users to supply and borrow a wide range of crypto assets. Originally launched as ETHLend in 2017, it rebranded to Aave in 2020 and pioneered features like flash loans and rate switching.

Ticker: AAVE Since 2020
Lending / Stablecoin Protocol

What is MakerDAO?

MakerDAO is the protocol behind DAI, a decentralized, overcollateralized stablecoin pegged to the US dollar. Launched in 2017, it was one of the earliest DeFi protocols. In 2024, MakerDAO rebranded to Sky, introducing the USDS stablecoin and SKY governance token alongside the existing DAI and MKR.

Ticker: MKR Since 2017

Key Differences

MakerDAO is primarily a stablecoin issuance protocol (DAI/USDS), while Aave is a general-purpose lending and borrowing platform.

Aave supports borrowing many different assets, whereas MakerDAO only allows users to borrow DAI against their collateral.

MakerDAO has integrated real-world assets like US Treasuries as collateral, which Aave has not focused on.

Aave operates across many chains natively, while MakerDAO is primarily Ethereum-based with DAI bridged elsewhere.

MakerDAO rebranded to Sky in 2024, introducing USDS and SKY tokens alongside the existing DAI and MKR.

Aave launched GHO as its own stablecoin, putting it in partial competition with MakerDAO DAI.

Which Should You Choose?

Aave and MakerDAO serve different primary use cases. MakerDAO is the go-to for minting the decentralized DAI stablecoin, while Aave excels as a versatile lending and borrowing market for many assets. Both are foundational DeFi protocols, and many users interact with both.

Frequently Asked Questions

Can I use DAI on Aave?
Yes. DAI is one of the most popular assets on Aave. Users can supply DAI to earn interest or use it as collateral to borrow other assets. Aave and MakerDAO are complementary protocols in this regard.
What is the difference between DAI and GHO?
Both are overcollateralized stablecoins pegged to the US dollar. DAI is minted through MakerDAO vaults by depositing collateral, while GHO is minted by borrowers on Aave using their supplied collateral. DAI has a much larger market cap and longer track record.
What happened to MakerDAO rebranding to Sky?
In 2024, MakerDAO began rebranding to Sky, introducing USDS (an upgraded DAI) and SKY (a new governance token). DAI and MKR continue to exist and function alongside the new tokens. Users can upgrade their DAI to USDS and MKR to SKY if they choose.
Which protocol generates more revenue?
Both are among the highest-revenue DeFi protocols. MakerDAO earns from stability fees and RWA yields, while Aave earns from lending spreads across multiple chains. Revenue varies with market conditions and DeFi activity levels.
Is MakerDAO lending or a stablecoin protocol?
MakerDAO is both. It functions as a collateralized lending protocol where the only asset you can borrow is the DAI stablecoin. This makes it unique compared to general-purpose lending protocols like Aave that support borrowing many different assets.
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