Lygos charges 10% APR with $0 origination fees using non-custodial (dlc). Arch charges 8.49%–11% APR with a 1.5% origination fee using custodial (anchorage, qualified custodian). See the full breakdown of rates, thresholds, and custody risk below.
Rates verified 2026-05-14
Lygos offers a lower headline rate at 10% compared to Arch's 8.49%–11%. On a $1M loan held for 12 months, Arch saves $100 in total first-year cost (interest plus origination fees). From a custody perspective, Lygos presents lower counterparty risk with its non-custodial (dlc) model.
Arch offers tiered rates that decrease with larger loan amounts, while Lygos charges a flat rate regardless of loan size. Total year-1 cost includes both annualized interest and any origination fees charged upfront.
| Loan Size | Lygos APR | Arch APR | Lygos Total Year-1 Cost | Arch Total Year-1 Cost | Savings |
|---|---|---|---|---|---|
| $100,000 | 10% | 11% | $10,000 | $12,500 | $2,500 with Lygos |
| $250,000 | 10% | 11% | $25,000 | $31,250 | $6,250 with Lygos |
| $500,000 | 10% | 11% | $50,000 | $62,500 | $12,500 with Lygos |
| $1M | 10% | 8.49% | $100,000 | $99,900 | $100 with Arch |
| $5M | 10% | 8.49% | $500,000 | $499,500 | $500 with Arch |
Total year-1 cost includes annualized interest plus origination fees. Arch: 1.5% origination fee. Lygos: $0 origination fee. Rates sourced from each lender's public rate pages as of 2026-05-14.
Lygos and Arch take fundamentally different approaches to collateral custody. Lygos uses Non-custodial (DLC). Your Bitcoin is locked on the Bitcoin blockchain in a smart contract. Neither Lygos nor any third party can access or move your collateral. Arch uses Custodial (Anchorage, qualified custodian). Your Bitcoin is held by Arch and could be at risk in the event of a hack, insolvency, or regulatory action.
Lygos triggers margin calls at 70% LTV and liquidates at 85% LTV. Arch triggers margin calls at 70% LTV and liquidates at 80% LTV. Arch gives borrowers 24 hours to respond to a margin call. Lygos uses threshold-based triggers without a fixed response window.
| Threshold | Lygos | Arch |
|---|---|---|
| Max Starting LTV | 50% | 60% |
| Margin Call | 70% LTV | 70% LTV |
| Margin Call Window | Threshold-based | 24 hours |
| Liquidation | 85% LTV | 80% LTV |
Lygos: 35.0 percentage point buffer between starting LTV (50%) and liquidation (85%). Arch: 20.0 percentage point buffer between starting LTV (60%) and liquidation (80%). Lygos provides a wider safety margin.
The choice between Lygos and Arch comes down to three factors: total cost, custody architecture, and who the platform is designed for. Lygos serves borrowers from $50,000 to $50,000,000 with a single transparent rate and non-custodial DLC security. Arch serves a broader range starting from $5,000, using custodial (anchorage, qualified custodian).
On a $250,000 loan, Lygos costs $25,000 in the first year versus $31,250 at Arch, a difference of $6,250. Part of Arch's higher cost comes from its 1.5% origination fee, which adds $3,750 upfront on this loan size. Lygos charges no origination fee, so the only cost is interest.
The custody difference is material. Lygos uses non-custodial (dlc), which means your Bitcoin is locked on the Bitcoin blockchain in a smart contract where no party can access it. Arch uses custodial (anchorage, qualified custodian). In a platform insolvency scenario, Lygos borrowers' collateral is protected by the Bitcoin protocol, while Arch borrowers may face creditor claims.
Lygos is the better fit for borrowers who prioritize non-custodial security, want a single transparent rate, and are borrowing $50,000 or more. Arch is the better fit for borrowers who need smaller loans or more flexible access.
Key details to be aware of: Arch: Proactive pre-threshold alerts before MC triggers. Partial liquidation sells minimum to restore 60% LTV, 2% liquidation fee.
Lygos is cheaper. On a $500,000 loan held for 12 months, Lygos costs $50,000 (10% APR) while Arch costs $62,500 (11% APR + 1.5% origination fee). That is a $12,500 difference in the first year.
Lygos uses non-custodial (dlc). Arch uses custodial (anchorage, qualified custodian). Lygos presents lower custody risk because your collateral is locked on the Bitcoin blockchain where no party can access it.
Lygos's minimum loan is $50,000. Arch's minimum is $5,000. Arch is more accessible for smaller borrowers.
Lygos issues a margin call at 70% LTV (threshold-based, no fixed window) and liquidates at 85% LTV. Arch issues a margin call at 70% LTV with a 24-hour response window and liquidates at 80% LTV. Starting from a 50% LTV, Lygos provides a 35-point buffer before liquidation, while Arch provides a 30-point buffer.
It depends on your priorities. Lygos (10% APR, non-custodial (dlc), min $50,000) is better for borrowers who prioritize non-custodial security and want a flat transparent rate. Arch (8.49%–11% APR, custodial (anchorage, qualified custodian), min $5,000) is better for borrowers who value custodial (anchorage, qualified custodian) and need smaller loan access. Use the rate table and cost comparison above to model your specific scenario.
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