Home Academy Compare Aave vs MakerDAO: DeFi Lending Giants Compared

Aave vs MakerDAO: Which is Better?

Updated March 2026 Lending Comparison

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

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

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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Sources and further reading

The figures and claims on this page rest on the documents below. Time-sensitive figures (rates, yields, fees, market data) move: check the live value at the source before acting on it.

Aave, official website and documentationaave.com
Primary reference for the Aave design, features and figures quoted in the table.
MakerDAO, official website and documentationmakerdao.com
Primary reference for the MakerDAO design, features and figures quoted in the table.
CoinGeckocoingecko.com
Live prices, 24-hour change and market capitalization for AAVE and MKR shown at the top of this page.
DefiLlamadefillama.com
Live total value locked (TVL) and volume rankings referred to in the comparison.

Last reviewed: March 2026. External links open in a new tab; Coinstancy is not responsible for their content.