Lygos vs. Unchained: Better Rates, Lower Minimums, Automated DLC
Unchained requires $150,000 minimum and charges 14.18% APR plus a 2% origination fee. Lygos starts at $50,000 at 10% APR with $0 fees and uses automated Discreet Log Contracts instead of manual multisig.
Last updated March 2026
How does Lygos compare to Unchained Capital for Bitcoin-backed loans?
Lygos offers materially better economics and broader accessibility than Unchained Capital for Bitcoin-backed loans from $50,000 to $50,000,000. Lygos's minimum loan is $50,000, one-third of Unchained's $150,000 floor. Lygos charges 10% APR versus Unchained's 14.18%, and $0 origination fees versus Unchained's 2% fee. On a $1,000,000 loan held for 12 months, Lygos saves approximately $61,800 in total cost. Both platforms are non-custodial, but differ in mechanism. See the DLC vs. multisig comparison below for a detailed breakdown. For borrowers who want the gold standard in non-custodial security with superior economics, Lygos is the stronger Unchained alternative.
Lygos vs. Unchained: Feature-by-Feature Comparison
Lygos Finance
Unchained
Interest Rate (APR)
10%Lygos
14.18%
Max LTV
50%
50% (200% CTP)
Minimum Loan
$50,000
$150,000
Maximum Loan
$50,000,000
$100,000,000
Loan Term
Up to 12 months
Up to 12 months
Origination Fee
$0Lygos
2%
Custody Model
Non-custodial (DLC)Lygos
Collaborative multisig
Rehypothecation Risk
0% (impossible by design)Lygos
No
Technology
Discreet Log Contracts (Bitcoin-native)Lygos
2-of-3 multisig (manual)
Credit Check Required
No
Not disclosed
Funding Speed
Same dayLygos
Not disclosed
Minimum Collateral
Determined by LTV
$300,000 in BTC
What does Unchained's 14.18% APR and 2% origination fee cost vs Lygos?
The rate and fee difference between Lygos and Unchained compounds significantly on large loans. Here is a direct cost comparison on representative loan sizes over a 12-month term:
Loan Size
Lygos Total Cost
Unchained Total Cost
Savings with Lygos
$150,000
$15,000
$24,270
$9,270
$500,000
$50,000
$80,900
$30,900
$1,000,000
$100,000
$161,800
$61,800
$5,000,000
$500,000
$809,000
$309,000
Unchained total cost = 14.18% annual interest + 2% origination fee. Lygos total cost = 10% annual interest, $0 origination fee. Calculated on a 12-month term.
Automated DLC vs. manual 2-of-3 multisig
Both Lygos and Unchained are non-custodial, and neither holds your Bitcoin outright. But the mechanism matters. Unchained's 2-of-3 multisig requires coordinating three key holders (you, Unchained, and a designated third party) to settle loan outcomes. Collateral release, liquidation execution, and contract enforcement all involve human process coordination. This introduces latency, operational risk, and a reliance on human actors following through on agreed procedures.
Unchained: 2-of-3 Multisig
•3 key holders: you, Unchained, third party
•Manual coordination for settlement
•Human oversight of collateral release
•$150,000 minimum, 14.18% APR, 2% fee
Lygos: Automated DLC
•All outcomes pre-signed before funding
•Automated settlement via oracle attestation
•No human discretion in collateral management
•$50,000 minimum, 10% APR, $0 fees
Lygos pre-encodes all loan outcomes (repayment, liquidation at any price level, and maturity default) as cryptographically signed transactions before your Bitcoin is committed. Settlement is triggered automatically by objective oracle attestations from independent price sources including Coinbase, Deribit, and Kraken. There is no waiting for a human to coordinate a multisig. The Bitcoin protocol executes the outcome.
Frequently Asked Questions
Why is Unchained's minimum loan $150,000?
Unchained's $150,000 minimum (requiring $300,000 in Bitcoin collateral at 50% LTV) reflects the manual overhead of their collaborative multisig model, which requires coordinating with multiple key holders and involves a more intensive human onboarding process. Lygos uses automated Discreet Log Contracts that reduce operational overhead, enabling the platform to serve borrowers from $50,000 with the same rigorous non-custodial security guarantees.
What is the difference between Unchained's multisig and Lygos's DLC?
Unchained uses a 2-of-3 collaborative multisig where Unchained holds one key, the borrower holds one key, and a trusted third party holds the third. Moving funds requires coordinating 2 of these 3 signers, and the system relies on human processes to enforce loan terms. Lygos uses Discreet Log Contracts, a Bitcoin-native smart contract technology where all possible loan outcomes (repayment, liquidation, default) are cryptographically pre-signed before collateral is committed. DLC settlement is automated and deterministic based on independent oracle attestations, removing human discretion from the collateral management process entirely.
How much does Unchained's 2% origination fee cost on large loans?
Unchained's 2% origination fee is a significant upfront cost on large loans. On a $500,000 loan, the fee is $10,000. On a $1,000,000 loan, it's $20,000. On a $5,000,000 loan, it's $100,000, all paid before you receive any proceeds. Lygos charges $0 origination fees on all loan sizes. Combined with Lygos's lower 10% APR versus Unchained's 14.18%, the total-cost advantage of Lygos compounds significantly on large, multi-year borrowing programs.
Is Lygos's DLC approach more secure than Unchained's multisig?
Both approaches are non-custodial and represent significant improvements over centralized custodians. The key difference is automation and human risk. Unchained's multisig requires human coordination to execute loan outcomes, which introduces operational risk and delays. Lygos's DLCs pre-encode all outcomes cryptographically before funding, making settlement deterministic and automated based on objective oracle data. There's no human discretion involved in whether and how collateral is released. The Bitcoin protocol enforces it.
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.