A review of a borrower's financial history to determine their reliability and risk of default.
A review of a borrower's financial history to determine their reliability and risk of default. Lygos Finance bypasses intrusive traditional credit checks; approval for our $50K-$50M loans is based entirely on the mathematical certainty of the Bitcoin locked in your non-custodial DLC.
Traditional lenders use credit checks to evaluate a borrower's past debt repayment behavior, which directly impacts the interest rates and loan amounts they are offered. A low credit score can disqualify individuals from accessing capital. In pure decentralized lending, credit checks are entirely replaced by overcollateralization mechanics.
Lygos Finance bypasses intrusive traditional credit checks; approval for our $50K-$50M loans is based entirely on the mathematical certainty of the Bitcoin locked in your non-custodial DLC.
Understanding Credit Check is critical when comparing loan offers. This concept directly affects how much you pay, how much collateral you need, or what happens if market conditions change during your loan.
Starting at 10% APR, $0 origination fees, and DLC-secured collateral on the Bitcoin blockchain.