Aave charges ~4.4% (variable) APR with $0 origination fees using smart contract (wrapped btc via custodial bridge). Firefish charges ≈7%–13% (P2P) APR with a 1.5% origination fee using non-custodial escrow (3-of-3 pre-signed transactions). See the full breakdown of rates, thresholds, and custody risk below.
Rates verified 2026-06-09
Aave offers a lower headline rate at ~4.4% (variable) compared to Firefish's ≈7%–13% (P2P). On a $1M loan held for 12 months, Aave saves $80,000 in total first-year cost (interest plus origination fees). From a custody perspective, Firefish presents lower counterparty risk with its non-custodial escrow (3-of-3 pre-signed transactions) model.
Total year-1 cost includes both annualized interest and any origination fees charged upfront.
| Loan Size | Aave APR | Firefish APR | Aave Total Year-1 Cost | Firefish Total Year-1 Cost | Savings |
|---|---|---|---|---|---|
| $100,000 | 4.4% | 10.9% | $4,400 | $12,400 | $8,000 with Aave |
| $250,000 | 4.4% | 10.9% | $11,000 | $31,000 | $20,000 with Aave |
| $500,000 | 4.4% | 10.9% | $22,000 | $62,000 | $40,000 with Aave |
| $1M | 4.4% | 10.9% | $44,000 | $124,000 | $80,000 with Aave |
| $5M | 4.4% | 10.9% | $220,000 | $620,000 | $400,000 with Aave |
Total year-1 cost includes annualized interest plus origination fees. Firefish: 1.5% origination fee. Aave rates are variable; the table uses a representative recent rate. Firefish rates are set by the lending marketplace; the table uses a representative recent rate. Rates sourced from each lender's public rate pages as of 2026-06-09.
Aave and Firefish take fundamentally different approaches to collateral custody. Aave holds collateral in audited smart contracts rather than with a single lender, but borrowing requires wrapped Bitcoin (WBTC or cbBTC) — your underlying BTC is held by the wrapper's custodian (BitGo/BiT Global for WBTC, Coinbase for cbBTC), reintroducing custodial bridge risk. Smart-contract and oracle risk also apply. Firefish uses Non-custodial escrow (3-of-3 pre-signed transactions). Your Bitcoin is locked on the Bitcoin blockchain in a smart contract. Neither Firefish nor any third party can access or move your collateral.
Aave has no margin-call mechanism: positions become liquidatable automatically the moment LTV crosses 78%, with no warning threshold or response window. Firefish triggers margin calls at 73% LTV and liquidates at 95% LTV.
| Threshold | Aave | Firefish |
|---|---|---|
| Max Starting LTV | 73% | 50% |
| Margin Call | None | 73% LTV |
| Margin Call Window | None — automated liquidation | Threshold-based |
| Liquidation | 78% LTV | 95% LTV |
Aave: 5.0 percentage point buffer between starting LTV (73%) and liquidation (78%). Firefish: 45.0 percentage point buffer between starting LTV (50%) and liquidation (95%). Firefish provides a wider safety margin.
Choosing between Aave and Firefish requires evaluating total cost, custody risk, and which platform aligns with your borrowing profile. Aave uses smart contract (wrapped btc via custodial bridge) with ~4.4% (variable) APR, while Firefish uses non-custodial escrow (3-of-3 pre-signed transactions) with ≈7%–13% (P2P) APR.
On a $250,000 loan, Aave costs $11,000 in the first year versus $31,000 at Firefish, a difference of $20,000. Part of Firefish's higher cost comes from its 1.5% origination fee, which adds $3,750 upfront on this loan size. Aave charges no origination fee, so the only cost is interest.
The custody difference is material. Firefish uses non-custodial escrow (3-of-3 pre-signed transactions), which means your Bitcoin requires multiple key holders to coordinate, reducing single-point-of-failure risk. Aave uses smart contract (wrapped btc via custodial bridge). In a platform insolvency scenario, Firefish borrowers' collateral is protected by the multisig architecture, while Aave borrowers may face creditor claims.
Aave is the better fit for borrowers who need smaller loans or instant access. Firefish is the better fit for borrowers who need smaller loans or more flexible access.
Key details to be aware of: Aave: DeFi money market — rates are variable and utilization-driven: USDC borrow against WBTC/cbBTC has ranged ~3.5-5. Firefish: European P2P marketplace (EUR, CZK, CHF, PLN fiat + USDC) — rates set by investor supply and demand, typically ~7-13% (advertised 'from 5%'). 1.
Aave is cheaper. On a $500,000 loan held for 12 months, Aave costs $22,000 (4.4% APR) while Firefish costs $62,000 (10.9% APR + 1.5% origination fee). That is a $40,000 difference in the first year.
Aave uses smart contract (wrapped btc via custodial bridge). Firefish uses non-custodial escrow (3-of-3 pre-signed transactions). Firefish presents lower custody risk because your collateral requires coordination among multiple key holders.
Aave has no minimum loan amount. Firefish's minimum is $1,000. Aave is more accessible for smaller borrowers.
Aave has no margin call — positions are liquidated automatically the moment LTV crosses 78%. Firefish issues a margin call at 73% LTV (threshold-based, no fixed window) and liquidates at 95% LTV. Starting from a 50% LTV, Aave provides a 28-point buffer before liquidation, while Firefish provides a 45-point buffer.
It depends on your priorities. Aave (~4.4% (variable) APR, smart contract (wrapped btc via custodial bridge), no minimum) is better for borrowers who value smart contract (wrapped btc via custodial bridge) and need smaller loan access. Firefish (≈7%–13% (P2P) APR, non-custodial escrow (3-of-3 pre-signed transactions), min $1,000) is better for borrowers who value non-custodial escrow (3-of-3 pre-signed transactions) and need smaller loan access. Use the rate table and cost comparison above to model your specific scenario.
Lygos offers 10% APR, $0 origination fees, and DLC-secured collateral where rehypothecation is cryptographically impossible.