Government-issued money that is not backed by a physical commodity like gold or silver.
Government-issued money that is not backed by a physical commodity like gold or silver. With Lygos Finance, borrowers deposit Bitcoin into a non-custodial DLC to secure $50K-$50M in pure fiat currency, completely bypassing the risks associated with volatile stablecoins.
Fiat currencies, such as the US Dollar, Euro, or Yen, derive their value from government decree and the trust of the public. They are centrally controlled by national central banks, which can manipulate their supply through monetary policy. In crypto lending, fiat is usually the desired principal that users borrow against their digital assets.
With Lygos Finance, borrowers deposit Bitcoin into a non-custodial DLC to secure $50K-$50M in pure fiat currency, completely bypassing the risks associated with volatile stablecoins.
Understanding Fiat Currency 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.