Multi-Protocol DeFi Lending Rate Comparator

1. Current rates (USDC supply APY, reference — verify live before acting)

Sources for live rates: Aavescan, DefiRate, vaults.fyi, DefiLlama Yields.

2. Switch decision

3. Diversified split (blended yield vs 100% best / 100% worst)

How it works

The switch decision compares the annual dollar gain from moving your capital to a higher-paying protocol against a one-time gas cost. Annual gain is your capital times the rate spread between the two protocols (destination APY minus origin APY); dividing that by 365 gives you a daily gain in dollars. Break-even days is simply the gas cost divided by that daily gain — the number of days you need to stay in the new protocol before the switch has paid for itself. If the destination rate isn't higher than the origin rate, there's no daily gain to offset the gas cost, so the switch never breaks even. The diversified split section takes whatever percentage split you enter across Aave, Compound and Morpho (normalized to 100% if your numbers don't already add up) and computes a blended APY — a weighted average of the three rates by their split weights — then shows that against two reference points: what you'd earn putting 100% into the single best-paying protocol, and what you'd earn putting 100% into the single worst-paying one. The gap between your blended yield and the all-best scenario is the explicit dollar cost of spreading your capital across multiple protocols instead of concentrating it.

Reading the numbers

With the defaults — Aave 5.9%, Compound 4.0%, Morpho 6.8% — switching $100,000 from Compound to Morpho gains 100,000 × (6.8% − 4.0%) = $2,800 a year, or about $7.67 a day. Against a $15 gas cost, that breaks even in 15 ÷ 7.67 ≈ 1.96 days, call it about 2 days — at this capital size, gas is essentially a rounding error and switching is close to free money. Now run the exact same rate switch on $1,000 instead: the annual gain drops to $28, or about $0.077 a day, and the same $15 gas cost now takes 15 ÷ 0.077 ≈ 195.6 days — about 6.4 months — to pay for itself. This is the central insight of the switch calculator: the break-even math scales entirely with your capital, not with the rate spread alone, so a 2.8-point rate improvement that's a no-brainer at $100k can be barely worth the hassle at $1k unless you're confident you'll hold that position for more than half a year. For the diversified split, 40% Aave / 20% Compound / 40% Morpho on $100,000 blends to (40×5.9 + 20×4.0 + 40×6.8) ÷ 100 = 5.88% APY, or $5,880 a year — versus $6,800 if you'd put everything into Morpho alone (the best payer) and $4,000 if you'd put everything into Compound (the worst payer). Diversifying here costs $6,800 − $5,880 = $920 a year compared to chasing the single best rate. That's a real, quantifiable cost — but it's buying you something: your funds aren't entirely exposed to one protocol's smart-contract bugs, oracle failures or, in Morpho's case, one curator's risk decisions. Whether $920 a year is worth that protection is a judgment call, not a math error.

FAQ

Why do Aave, Compound and Morpho pay such different supply rates for the same asset?

Each protocol prices its supply rate off a different utilization curve and risk model, so identical USDC deposited in three places rarely earns the same yield. Aave v3 and Compound v3 use pooled markets where the supply APY is derived algorithmically from how much of the pool is currently borrowed — the more utilized the pool, the higher the rate paid to suppliers, but the curve, reserve factor and kink point differ between the two protocols even for the same asset. Morpho Blue works differently: it's a base layer on which curators build permissionless "MetaMorpho" vaults that route deposits into hand-picked markets and actively manage risk parameters like collateral factors and oracle choices. Because a curator is doing active work — choosing which markets to lend into, monitoring risk, rebalancing — Morpho vaults can pay a noticeably higher headline rate than a passive Aave or Compound pool, but curators typically charge a 5-15% performance fee on the yield generated. Even after that fee, the net rate is often still higher than the passive alternative, but it also means you're trusting a curator's judgment, not just a protocol's code.

When is switching protocols actually worth the gas cost?

It depends almost entirely on your capital size relative to the fixed gas cost, because the break-even calculation is gas cost divided by daily gain, and daily gain scales with capital while gas cost usually doesn't. Take a 2.8 percentage point rate improvement (say moving from a 4% to a 6.8% supply APY) with a flat $15 gas cost to withdraw and redeposit: on $100,000 of capital, the extra yield is about $7.67 a day, so you break even in under 2 days — switching is essentially free money past that point. On $1,000 of capital, the same 2.8 point improvement is only about 8 cents a day, so the same $15 gas cost takes roughly 196 days, or about 6.4 months, to pay for itself. That's the core mechanic worth internalizing: rate-chasing makes obvious sense for large deposits and can be a wash or worse for small ones, because gas cost is fixed but your dollar gain from a rate spread scales with how much capital you're moving.

Is diversifying across all three protocols ever smarter than chasing the single best rate?

Yes, and the reason has nothing to do with maximizing yield — it's about protocol and smart-contract risk. Putting 100% of a deposit into whichever protocol currently pays the highest rate concentrates your exposure to that one protocol's code, oracle dependencies, admin key risk and, in Morpho's case, a specific curator's judgment. Splitting capital across Aave, Compound and Morpho means a bug, exploit, oracle failure or bad curator decision in any single one of them only affects a fraction of your funds rather than all of it. The blended APY from a diversified split will almost always be lower than what you'd earn going 100% into the single best-paying protocol — that's the explicit cost of diversification, and it's worth quantifying rather than ignoring, but a lower blended yield in exchange for meaningfully reduced tail risk is a legitimate, common institutional-style tradeoff, not automatically a mistake.

How often do these rates change, and why aren't the defaults live data?

DeFi supply rates on Aave and Compound recalculate continuously as utilization shifts with every deposit, withdrawal and loan repayment on-chain, so the APY you see can move meaningfully within a single day, especially during periods of high borrowing demand. Morpho vault rates change as curators rebalance allocations and as the underlying markets they lend into see utilization swings. Because this calculator runs entirely in your browser with no server and no live data feed, the default rates shown are reference points captured around the stated verification date, not a real-time feed — they exist so you can see how the tool works and roughly where rates have recently sat, but you should always overwrite them with current numbers before making a real decision. For live rates, check dashboards like DefiLlama, Aavescan, DefiRate or vaults.fyi, or the protocol's own app, immediately before moving funds.