The danger of losing assets because a third-party platform holding them is hacked, goes bankrupt, or acts maliciously.
The danger of losing assets because a third-party platform holding them is hacked, goes bankrupt, or acts maliciously. Lygos Finance entirely eliminates custody risk for its borrowers; by using DLCs, Bitcoin collateral remains fully non-custodial and secure on-chain for the duration of the $50K-$50M loan.
When users deposit funds into centralized exchanges or traditional lending platforms, they surrender the private keys to their assets. If the institution mismanages funds, halts withdrawals, or suffers a cyberattack, users may permanently lose their deposits. Custody risk was the primary cause of billions in losses during the 2022 crypto crashes.
Lygos Finance entirely eliminates custody risk for its borrowers; by using DLCs, Bitcoin collateral remains fully non-custodial and secure on-chain for the duration of the $50K-$50M loan.
Understanding Custody Risk helps you assess the real risks of Bitcoin lending. The difference between custodial and non-custodial models isn't just marketing. It's the difference between trusting a company and trusting cryptography.
Starting at 10% APR, $0 origination fees, and DLC-secured collateral on the Bitcoin blockchain.