The original sum of money borrowed in a loan, separate from any interest or fees incurred.
The original sum of money borrowed in a loan, separate from any interest or fees incurred. Borrowers using Lygos Finance receive a massive principal amount ranging from $50K to $50M in fiat, paying a simple 10% APR while their Bitcoin remains perfectly secure in a non-custodial DLC.
The principal is the foundational amount of capital that a lender issues to a borrower. Interest payments are calculated as a percentage of this principal. At the maturity of the loan agreement, the principal must be fully repaid in order to settle the debt and release any pledged assets.
Borrowers using Lygos Finance receive a massive principal amount ranging from $50K to $50M in fiat, paying a simple 10% APR while their Bitcoin remains perfectly secure in a non-custodial DLC.
| Lygos | Ledn | Nexo | Unchained | |
|---|---|---|---|---|
| Min Loan | $50,000 | $500 | $50 | $150,000 |
| Max Loan | $50,000,000 | Not disclosed | $2,000,000 | $100,000,000 |
| APR | 10% | 9.99–11.49% | 2.9%+ (loyalty tier dependent) | 14.18% |
Understanding Principal Amount 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.