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Lygos vs. Nexo: Transparent Rates vs. Loyalty Tier Bitcoin Loans

Nexo's advertised rates require holding NEXO tokens and meeting loyalty tier criteria. Lygos charges a flat 10% APR with no token requirements, $0 origination fees, and DLC-secured collateral that cannot be rehypothecated.

Last updated March 2026

What is the best Nexo alternative for Bitcoin-backed loans?

Lygos Finance is the best Nexo alternative for borrowers who want transparent pricing and real collateral security. Nexo's headline 2.9% APR applies only to Platinum-tier members with substantial NEXO token holdings, and most borrowers pay 6.9% or higher. See the loyalty tier breakdown below. Nexo also operates custodially, holding your Bitcoin and re-lending platform assets to generate yield. Lygos charges a flat 10% APR with no tiers, no token requirements, and $0 origination fees on loans from $50,000 to $50,000,000. Your collateral is locked in a Discreet Log Contract on the Bitcoin blockchain where rehypothecation is cryptographically impossible. For large borrowers who want predictable costs and genuine non-custodial security, Lygos is the stronger alternative.

Lygos vs. Nexo: Feature-by-Feature Comparison

Lygos Finance
Nexo
Interest Rate (APR)
10%Lygos
2.9%+ (loyalty tier dependent)
Max LTV
50%
50% (BTC)
Minimum Loan
$50,000
$50
Maximum Loan
$50,000,000
$2,000,000
Loan Term
Up to 12 months
No fixed term
Origination Fee
$0Lygos
See fee schedule
Custody Model
Non-custodial (DLC)Lygos
Custodial
Rehypothecation Risk
0% (impossible by design)Lygos
Yes, platform re-lends assets
Technology
Discreet Log Contracts (Bitcoin-native)Lygos
Centralized custody
Credit Check Required
No
No
Funding Speed
Same dayLygos
Instant
Minimum Collateral
Determined by LTV
Varies by asset

The truth about Nexo's loyalty tier pricing

Nexo's loan rates are marketed starting from 2.9% APR, but this rate is only accessible to Platinum-tier members who maintain a specific minimum percentage of their portfolio in NEXO tokens. Most borrowers, particularly those who don't hold NEXO tokens or don't want platform-token exposure, access rates of 6.9% or higher.

Rate transparency note: Lygos charges a flat 10% APR to all borrowers regardless of token holdings, portfolio composition, or account tier. There are no hidden conditions to unlock the advertised rate.

Beyond pricing, the more significant concern with Nexo is custody. When you pledge Bitcoin to Nexo, you transfer possession to a centralized custodian operating a yield-generating platform. Your collateral is co-mingled with platform assets. Lygos's DLC architecture means your BTC never leaves the Bitcoin blockchain. It's locked in a verifiable on-chain contract, not held in a custodial wallet.

Nexo: Custodial + Tier-Gated
  • •2.9% rate requires Platinum tier + NEXO holdings
  • •Most borrowers pay 6.9%+ APR
  • •Custodial: Nexo holds your keys
  • •Platform re-lends assets for yield
Lygos: Transparent + Non-Custodial
  • •10% APR flat, no tiers, no tokens
  • •$0 origination fees
  • •BTC locked on-chain in DLC
  • •0% rehypothecation, impossible by design

Frequently Asked Questions

What are Nexo's real interest rates after loyalty tiers?

Nexo advertises rates starting at 2.9% APR, but this rate is only available to Platinum-tier clients who hold a specific percentage of their portfolio in NEXO tokens and meet other requirements. Most borrowers without substantial NEXO holdings pay 6.9% or higher. Lygos charges a flat 10% APR regardless of token holdings, portfolio composition, or loyalty status, making it simpler to model the true cost of borrowing.

Does Nexo rehypothecate borrower collateral?

Yes. Nexo operates a custodial model where deposited assets are used to generate yield for the platform and its users. Your Bitcoin collateral is held in Nexo's custody and the platform re-lends assets. This introduces counterparty and insolvency risk that does not exist with Lygos. Lygos's DLC architecture locks your BTC in an on-chain smart contract where neither Lygos nor any counterparty can access or lend out your collateral at any time.

How does Lygos's collateral security compare to Nexo?

With Nexo, your Bitcoin is held by Nexo in a custodial account. A platform insolvency, hack, or regulatory action could put your collateral at risk. Lygos uses Discreet Log Contracts, where your BTC is locked directly on the Bitcoin blockchain in a 2-of-2 smart contract. All possible outcomes are pre-signed before any collateral is committed. If Lygos ceased operations tomorrow, your collateral would remain cryptographically secured on the Bitcoin blockchain, accessible via the pre-signed contract execution transactions.

Does Lygos require holding any native token like Nexo requires NEXO tokens?

No. Lygos has no native token and requires no token holdings to access its best rates. There are no loyalty tiers, staking requirements, or platform tokens. All borrowers pay the same transparent 10% APR, and all collateral receives the same non-custodial DLC protection regardless of portfolio size or token holdings.

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.

Understand the key terms

RehypothecationDiscreet Log ContractsAPRYield on BitcoinCustodial vs. Non-CustodialCounterparty Risk

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No loyalty tiers. No hidden conditions. Just your BTC, secured on-chain.

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