Lending Aggregator
A platform that sources the best lending or borrowing rates across multiple DeFi protocols.
What is Lending Aggregator?
Lending aggregators, like Yearn Finance or 1inch Loans, optimize yields or borrowing costs by routing user funds to protocols with the best rates. For example, depositing USDC via Yearn might allocate funds to Aave’s 5% APY pool over Compound’s 4%. In 2025, aggregators manage $5 billion in TVL, per DefiLlama, simplifying user interactions.
Aggregators enhance capital efficiency but introduce smart contract risks across multiple platforms. In 2024, aggregators saved users 1–2% on average borrowing costs, making them essential for yield optimization in competitive markets.
Related Terms
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Ledger
An immutable, distributed digital record of transactions maintained across network nodes.
Altcoin
Any digital asset or cryptocurrency other than Bitcoin, often developed to offer alternative features, use cases, or improvements.
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Depth Chart
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Federal Funds Interest Rate
The interest rate at which depository institutions lend reserve balances to each other overnight, targeted by the Federal Reserve to influence economic activity.