What a bank would do — and what you do instead
A bank carries risk on your behalf: it holds capital, follows supervisors’ rules and, in the US, is backed by FDIC deposit insurance. When you act as your own bank, those layers are gone. Every risk — code, custody, counterparties and your own mistakes — lands with you, so learning to recognise it is the most valuable skill on this site.
The checklist
See how protocols score
Protocol safety scorecard
| Protocol | Launched | Audits | TVL | Incidents | Chains | Notes |
|---|---|---|---|---|---|---|
| Aave V3 | 2020 (V3 2022) | Many (OpenZeppelin, Trail of Bits, Certora, SigmaPrime, others) | Tens of billions USD | None with lender losses | 10+ | Largest lending market; Safety Module and governance-set risk parameters. |
| Compound V3 | 2018 (V3 2022) | Multiple (OpenZeppelin, ChainSecurity) | Billions USD | 2021 COMP distribution bug (rewards, not lender deposits) | 8+ | Single borrowable asset per market (e.g., USDC) simplifies risk. |
| Morpho | 2022 | Many, plus formal verification | Billions USD | No core-protocol lender losses; vault curator risk varies | Ethereum, Base and others | Isolated markets; yields depend on the vault curator you choose. |
| Uniswap | 2018 | Many | Billions USD | No core-contract exploits; LPs face impermanent loss | 10+ | A DEX, not a lender; useful for swapping, LP returns are not interest. |
| Lido | 2020 | Many | Tens of billions USD | None with staker losses to date | Ethereum (stETH/wstETH bridged elsewhere) | 10% fee on staking rewards; validator set concentration is a debated risk. |
| Kamino | 2022 | Multiple, plus formal verification | Billions USD | None with lender losses reported | Solana | Leading Solana lending market; check each market’s collateral list. |
| Jupiter Lend | 2025 | Multiple (built with Fluid) | Hundreds of millions USD | None reported | Solana | Newer protocol: shorter track record means more unknowns. |
A long track record and many audits reduce risk but never remove it. “No incidents” means none that cost lenders money that we know of.
Education only, not financial advice. Rates change and are not guaranteed. CoinPayBank is not a bank.
SourcesFrequently asked questions
Does a high TVL mean a protocol is safe?
No. TVL shows how much money trusts it, not whether that trust is justified.
How often should I recheck?
Whenever a protocol upgrades, changes parameters or has an incident — and at least every few months.
Last reviewed: