Glossary

Escrow

A financial arrangement where a trusted third party holds assets until specific contract conditions are met.

What is Escrow?

A financial arrangement where a trusted third party holds assets until specific contract conditions are met. Lygos Finance replaces risky traditional escrow agents with cryptographic DLCs, creating a mathematically guaranteed, non-custodial environment to hold Bitcoin collateral for $50K-$50M loans.

Full Definition

In traditional finance, escrow services are handled by banks or lawyers to ensure fairness in large transactions, like buying real estate. In the cryptocurrency space, smart contracts and multisignature wallets have largely automated the escrow process, holding funds trustlessly until cryptographic conditions are satisfied.

How Lygos Uses This

Lygos Finance replaces risky traditional escrow agents with cryptographic DLCs, creating a mathematically guaranteed, non-custodial environment to hold Bitcoin collateral for $50K-$50M loans.

Why this matters for borrowers

Understanding Escrow is essential for evaluating non-custodial lending. This technology is what makes it possible to borrow against Bitcoin without surrendering your keys to a third party.

Related Terms

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Starting at 10% APR, $0 origination fees, and DLC-secured collateral on the Bitcoin blockchain.