Lygos Finance presented what calls the first truly not custodial bitcoin -The supported loan platform, with the aim of transforming the cryptographic credit market with institutional degree design.
The platform is based on discrete registration contracts (DLC) Developed by Atomic Finance, which Lygos acquired earlier this year.
The DLC enforces bilateral loan agreements directly in the Bitcoin base layer, with an external oracle that witnesses facts such as BTC-USD prices, but not controlling the funds. The borrowers and lenders sign contract execution transactions, which means that the agreement occurs completely in the Bitcoin block chain without custodians or intelligent contract risk.
“The real non -custodial means exactly this,” said CEO Jay Patel in an admitted by email on Thursday. “No participant more than the borrower and the lender can move the funds.”
Lygos admits up to $ 100 million, with BTC guaranteed in a native script of 2 of 2 and USDC/USDT issued in Ethereum. The Evita Bitcoin or synthetic collateral model wrapped, maintaining native custody on both sides of the transaction.
During the Crypto Bull 2021 market, centralized lenders such as Celsius Network, Voyager Digital and Blockfi obtained billions in deposits when promising high yields. But these returns were often based on risky and interconnected loans.
The system was unbelievable in 2022, when the collapse of the stablcoin terra-lun and the bankruptcy of the coverage fund Three capital arrows (3AC) He left many of the main exhibited lenders. They followed massive retreats, which forced companies to freeze assets and request bankruptcy. Customers lost much of their deposited funds, and the reputation of Bitcoin’s loans had a severe blow.
By enforcing the agreements directly on Bitcoin layer 1, Lygos said that confidence with transparent and enforceable contracts can be restored and without dependence on custodians. The debut marks a new attempt to reinvent Bitcoin credit markets, this time with non -custodial rails.
