The unspent outputs of Bitcoin transactions that serve as the fundamental accounting model of the network.
The unspent outputs of Bitcoin transactions that serve as the fundamental accounting model of the network. When a borrower takes a loan with Lygos Finance, their specific UTXOs are locked securely within a non-custodial DLC, ensuring that their exact Bitcoin collateral is mathematically protected.
In Bitcoin, there are no traditional accounts or balances; instead, there are UTXOs. When a user sends Bitcoin, they consume existing UTXOs as inputs and create new UTXOs as outputs. A user's total balance is simply the sum of all UTXOs their private keys can unlock. This model enhances network security and parallel processing capabilities.
When a borrower takes a loan with Lygos Finance, their specific UTXOs are locked securely within a non-custodial DLC, ensuring that their exact Bitcoin collateral is mathematically protected.
Understanding UTXO (Unspent Transaction Output) helps you evaluate how different platforms handle your Bitcoin. Not all custody models are equal, and the technical details determine whether your BTC is truly safe.
Starting at 10% APR, $0 origination fees, and DLC-secured collateral on the Bitcoin blockchain.