Lygos Finance revealed what he calls the first really non -guardian bitcoin -The sustained loan platform, aimed at transforming the cryptographic credit market with institutional quality design.
The platform is built on discreet newspaper contracts (DLCS) Developed by Atomic Finance, which Lygos acquired earlier this year.
The DLCs apply the bilateral loan agreements directly to the Bitcoin base layer, with an external oracle attesting to facts such as BTC-USD prices, but not controlling funds. Borrowers and lenders sign the contract execution transactions, which means that the regulations occur entirely on the bitcoin blockchain without guards or risk of intelligent contract.
“True non-Garden means exactly that,” CEO Jay Patel said on Thursday sent by email. “No participant other than the borrower and the lender can move the funds.”
Lygos supports up to $ 100 million, with BTC guaranteed in a native and USDC / USDT script 2 script issued on Ethereum. The model avoids wrapped bitcoin or synthetic guarantees, retaining native custody on both sides of the transaction.
During the Haussier market of Cryptography 2021, centralized lenders such as Celsius Network, Digital Voyager and Blockfi attracted billions of deposits by promising high yields. But these yields were often built on risky and interconnected loans.
The system collapsed in 2022, when the collapse of the Stablecoin Terra-Luna and the bankruptcy of the Hedge Fund Capital of three arrows (3ac) left many of the main lenders exposed. Mass withdrawals followed, forcing companies to freeze assets and file for bankruptcy. Customers have lost a large part of their funds deposited, and the reputation of Bitcoin loans took a severe blow.
By applying the agreements directly to the Bitcoin 1 layer, Lygos said that he could restore confidence with transparent and enforceable contracts and no dependence on the guards. The beginnings mark a new attempt to reinvent Bitcoin credit markets, this time with non -guardian rails.
