A peer-to-peer exchange of two different cryptocurrencies without relying on a centralized exchange.
A peer-to-peer exchange of two different cryptocurrencies without relying on a centralized exchange. The cryptographic certainty of atomic swaps inspires the architecture of Lygos Finance's DLCs, ensuring that loan liquidations or collateral returns happen automatically and without centralized manipulation.
Atomic swaps utilize Hash Time-Locked Contracts (HTLCs) to ensure that a trade between two parties either completes entirely or fails completely, with all funds safely returned. This cryptographic mechanism removes counterparty risk, as neither party has to trust the other to send the agreed-upon funds.
The cryptographic certainty of atomic swaps inspires the architecture of Lygos Finance's DLCs, ensuring that loan liquidations or collateral returns happen automatically and without centralized manipulation.
Understanding Atomic Swap provides context for how Bitcoin lending fits into the broader financial ecosystem. DeFi concepts are reshaping how people think about borrowing and lending.
Starting at 10% APR, $0 origination fees, and DLC-secured collateral on the Bitcoin blockchain.