# Compare Historical rate

## Understand Borrowing Costs Before You Commit

Interest rates in DeFi are not static. They change with market demand, liquidity conditions, and protocol usage.

Relying on a single snapshot rate often leads to decisions made without context.

The Compare Historical Rates tool on SmartCredit is designed to solve this problem by letting users explore how borrowing rates have behaved over time across multiple platforms.

Instead of guessing whether a rate is “good,” users can see how it compares historically and make decisions with clarity.

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### What the Compare Historical Rates Tool Does

The Compare Historical Rates tool allows users to:

* View historical borrow interest rates across multiple DeFi platforms<br>
* Compare rates side-by-side over different time horizons<br>
* Analyze rate behavior for different assets<br>
* Understand volatility, stability, and long-term trends before borrowing<br>

The tool focuses on borrowing rates, helping users avoid decisions based purely on short-term fluctuations.

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### Supported Platforms and Assets

The tool currently displays historical borrowing rates from:

* SmartCredit<br>
* Aave (V2 & V3 where applicable)<br>
* Compound<br>
* MakerDAO<br>

Supported assets include:

* ETH<br>
* DAI<br>
* USDC
*
* USDT<br>

Users can switch between assets and platforms to see how borrowing costs differ and evolve over time.

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### Timeframe Selection

One of the core strengths of the Compare Historical Rates tool is flexible timeframe analysis.

Users can select from multiple time ranges, including:

* 1 week<br>
* 1 month<br>
* 6 months<br>
* 12 months<br>
* 5 years<br>

Shorter timeframes are useful for observing recent conditions, while longer ranges provide insight into rate stability and extreme volatility events.

This makes it easier to distinguish between temporary spikes and long-term patterns.

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### How to Read the Charts

Each chart displays:

* Date (X-axis)<br>
* Borrow interest rate (Y-axis)<br>
* Multiple lines, each representing a different platform<br>

By viewing these charts, users can identify:

* Periods of high volatility<br>
* Which platforms tend to have more stable borrowing rates<br>
* How rates react during market stress<br>
* Whether a current rate is historically high, low, or average<br>

This context helps users avoid entering loans during unusually expensive periods.

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### Why Historical Rate Context Matters

Borrowing decisions often fail not because users choose the wrong platform, but because they enter at the wrong time.

Historical context helps users answer questions such as:

* Has this rate been stable or volatile in the past?<br>
* Is the current rate unusually high compared to recent history?<br>
* How do different platforms behave during market swings?<br>
* Which protocol aligns better with fixed-term borrowing preferences?<br>

The Compare Historical Rates tool provides this context visually and transparently.

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### How This Fits Into the SmartCredit Ecosystem

The Compare Historical Rates tool works best as part of SmartCredit’s broader decision framework:<br>

* [Earn Calculator](https://learn.smartcredit.io/smartcredit.io)\
  \
  Translate rates into exact outcomes before committing.<br>
* [Portfolio MCP](https://smartcredit.io/portfolio)\
  \
  Structure interest-based strategies with visibility into allocation and exposure.<br>

Together, these tools help users move from raw information to informed, structured decisions.

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### Who Should Use This Tool

The Compare Historical Rates tool is especially useful for:

* Borrowers planning fixed-term loans<br>
* Users comparing platforms before opening a position<br>
* Risk-aware users who want to avoid rate volatility<br>
* Anyone who prefers data-driven decisions over snapshots<br>

It is not designed to predict future rates, but to provide clarity through historical data.

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