Market Positioning: Paydax vs. Other DeFi Platforms

While DeFi lending has matured with platforms like Aave, Compound, and MakerDAO, Paydax introduces a fundamentally different model that solves key pain points for everyday users, long-term investors, and DAO treasuries alike. Below is a simplified comparison to help users clearly understand how Paydax stands out in practice, not just in philosophy.

Feature	Aave	Compound	MakerDAO	Paydax
Interest Model	Variable (0.5–15%)	Variable (0.5–20%)	Stability fee (up to 5%)	Fixed (5-7% APR for primary markets)
Collateral Types	Major crypto assets (ETH, WBTC, USDC)	Similar to Aave	Mostly ETH, WBTC, USDC, stETH	Crypto, staked tokens, LP tokens, real-world assets (RWAs)
Liquidation Risk	High (price-based trigger with minimal buffer)	High (no custom liquidation buffer)	Medium (liquidation ratio varies)	Managed (Health Factor < 1.0 trigger, Stability Pool, 5% penalty, 50% partial liquidation)
Asset Flexibility	Crypto only	Crypto only	Crypto only	Crypto + RWAs (real estate, gold, etc.)
Loan-to-Val ue (LTV)	Strict, asset-depende nt	Strict, asset-depende nt	Strict, fixed ratios (e.g., 150% for ETH)	Flexible, capital-efficient
Rewards & Incentives	aTokens, governance, flash loans	COMP token rewards	DAI Savings Rate, governance	Stability Pool rewards, tiered PDP benefits
User Experience	Can be complex for new users	Can be complex for new users	Requires understanding of CDPs and ratios	Simple vault system, instant liquidity, user-friendly