Lygos Finance Launches Non-Custodial Bitcoin Lending Platform
Lygos Finance has launched a non-custodial bitcoin (BTC)-backed lending platform, aiming to innovate the crypto credit market. Key details include:
- The platform uses Discrete Log Contracts (DLCs) from Atomic Finance.
- DLCs facilitate bilateral lending agreements directly on Bitcoin's blockchain without custodians.
- Funds can only be moved by the borrower and lender, ensuring true non-custodial status.
- Lygos supports up to $100 million, using BTC collateral in a native 2-of-2 script and USDC/USDT from Ethereum.
- The model avoids wrapped bitcoin or synthetic collateral, maintaining custody on both transaction sides.
Previous centralized lenders faced significant issues during the 2021 bull market, leading to bankruptcies and loss of customer funds. Lygos aims to restore confidence with transparent contracts and no reliance on custodians, marking a new phase for bitcoin credit markets.