How does Lygos's DLC technology differ from Ledn's custody model?
Ledn takes unilateral custody of your Bitcoin collateral when you take out a loan. This means Ledn holds your private keys and can re-lend your BTC through its B2X institutional lending program. If Ledn experienced a solvency event (as happened with Celsius and BlockFi), your collateral could be at risk. Lygos uses Discreet Log Contracts, a 2-of-2 Bitcoin smart contract where your collateral is locked on the Bitcoin blockchain itself. Neither Lygos nor any third party can access it. All loan outcomes (repayment, liquidation, default) are pre-signed before your BTC is locked.
Is Lygos cheaper than Ledn?
Yes. Lygos charges 10% APR with $0 origination fees. Ledn charges 9.99–11.49% APR plus a 2% admin fee. On a $1,000,000 loan held for 12 months, Ledn's total cost ranges from $119,900 to $134,900 (interest + admin fee) compared to Lygos's $100,000 — saving you $19,900 to $34,900.
Does Ledn rehypothecate borrower collateral?
Yes. Ledn's B2X product explicitly involves lending out BTC deposited by users to institutional borrowers. When you take a loan with Ledn, your Bitcoin collateral is held custodially and may be re-lent to third parties. With Lygos, rehypothecation is technically impossible because your BTC is locked in an on-chain DLC that no party can access or move while the loan is active.
What is the minimum loan size at Lygos vs Ledn?
Ledn's minimum loan is $500, making it accessible for smaller borrowers. Lygos's minimum is $50,000, reflecting its focus on high-net-worth individuals, businesses, and institutions who hold significant Bitcoin. If you need less than $50,000, Ledn may be the appropriate option, but for larger loans where custody risk matters, Lygos's non-custodial architecture provides materially stronger security guarantees.
What happens to my Bitcoin if Lygos goes out of business?
Your Bitcoin collateral is locked in a Discreet Log Contract on the Bitcoin blockchain, not in a Lygos wallet. If Lygos ceases operations, the DLC contract can still execute its pre-signed outcomes. Your collateral is protected by cryptography and the Bitcoin network, not by Lygos's solvency. This is the fundamental difference between non-custodial and custodial lending.
How long does it take to get funded with Lygos vs Ledn?
Ledn reports a median funding time of 18 hours. Lygos typically funds within 24-48 hours after DLC setup. The additional time accounts for the on-chain collateral locking process: your Bitcoin must be cryptographically secured in a Discreet Log Contract before funds are disbursed. This extra step is what eliminates custodial risk.