Decentralized Lending Protocol Comparison: Aave 4.0 vs Compound III vs dYdX v4 - NextGenBeing Decentralized Lending Protocol Comparison: Aave 4.0 vs Compound III vs dYdX v4 - NextGenBeing
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Decentralized Lending Protocol Comparison: Aave 4.0 vs Compound III vs dYdX v4

A comprehensive comparison of Aave 4.0, Compound III, and dYdX v4 decentralized lending protocols, including smart contract audits, interest rate models, and liquidity provisioning strategies.

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NextGenBeing Founder

NextGenBeing Founder

Dec 17, 2025 23 views
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Introduction to Decentralized Lending Protocols

When I first started exploring decentralized lending protocols, I was surprised by the complexity of the smart contracts involved. Last quarter, our team discovered that Aave 4.0, Compound III, and dYdX v4 were the top contenders in the space. Here's what I learned when comparing these protocols.

Smart Contract Audits

One of the most critical aspects of decentralized lending protocols is the security of their smart contracts. I realized that Aave 4.0 had undergone a thorough audit by Trail of Bits, while Compound III had been audited by OpenZeppelin. dYdX v4, on the other hand, had a unique approach to security, using a combination of formal verification and auditing. When I tried to replicate the audit process, I discovered that Aave 4.0's contracts were more modular and easier to understand.

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