Lygos charges 10% APR with $0 origination fees using non-custodial (DLC). Arch charges 7.25%–10.49% APR with a 0.25%–1.49% origination fee using custodial (Anchorage, qualified custodian). See the full breakdown of rates, thresholds, and custody risk below.
Terms checked individually — Lygos: 2026-09-29; Arch: 2026-09-29.
For the standardized $250,000, 50% LTV, 12-month scenario, Lygos is 10% APR and Arch is 9.99% APR. Lygos: 50% LTV · 12-month term. Arch: Monthly-pay option; APR includes the size-based origination fee.
Arch's published APR already includes 1.49% origination fee. Lygos charges no origination or processing fees — interest is the only cost.
From a custody perspective, Lygos presents lower counterparty risk with its non-custodial (DLC) model.
To keep the comparison clean, both lenders are modeled at $250,000 principal, 50% starting LTV, and a 12-month term, using monthly-pay pricing where available. Lygos pricing varies by flat rate; Arch pricing varies by loan size and payment schedule. Actual offers can differ when those inputs change.
| Loan Size | Lygos APR | Arch APR | Lygos Total Year-1 Cost | Arch Total Year-1 Cost | Savings |
|---|---|---|---|---|---|
| $250,000 | 10% | 9.99% | $25,000 | $24,975 | Nearly even |
Assumptions: $250,000 principal, 50% starting LTV, 12-month term, and monthly-pay pricing where offered. Total year-1 cost includes annualized interest and fees, but does not add a fee again when the lender's published APR already includes it. Arch: 1.49% origination fee — already included in APR. Lygos: $0 origination fee. Terms checked individually — Lygos: 2026-09-29; Arch: 2026-09-29.
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 depends on the security and solvency of that custody arrangement and could be at risk in the event of a hack, insolvency, or regulatory action.
Lygos: At-risk alert at 80%; no mandatory call. Positions liquidate at 90% 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 has no mandatory margin-call step; at-risk alert at 80%; no mandatory call.
| Threshold | Lygos | Arch |
|---|---|---|
| Max Starting LTV | 70% | 60% |
| Margin Call | At-risk alert at 80%; no mandatory call | 70% LTV |
| Margin Call Window | No margin-call window | 24 hours |
| Liquidation | 90% LTV | 80% LTV |
This comparison uses each lender's own maximum starting LTV, not a common 50% starting position. Lygos: 20.0 percentage point modeled buffer between maximum starting LTV (70%) and liquidation (90% LTV). Arch: 20.0 percentage point modeled buffer between maximum starting LTV (60%) and liquidation (80% LTV). Both lenders provide the same 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 $25,000 to $100M with a single transparent rate and non-custodial DLC security. Arch serves a broader range starting from $5,000, using custodial (Anchorage, qualified custodian).
At $250,000, both lenders have comparable first-year costs: Lygos at $25,000 and Arch at $24,975. The difference is marginal, so the decision turns on custody architecture, liquidation terms, and platform features rather than raw cost.
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). That arrangement adds custody-provider and insolvency risk that a script-enforced DLC avoids.
Lygos is the better fit for borrowers who prioritize non-custodial security, want a single transparent rate, and are borrowing $25,000 or more. Arch is the better fit for borrowers who need smaller loans or more flexible access.
Key details to be aware of: Arch: APR and origination fee both vary by loan size; deferred-interest APR is 0.50 percentage points higher than monthly-pay APR through $5M.
The costs are nearly identical. Lygos totals $25,000 and Arch totals $24,975 under the standardized scenario. Other factors like custody model and liquidation terms may be more important in this case.
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 $25,000. Arch's minimum is $5,000. Arch is more accessible for smaller borrowers.
Lygos has no formal margin-call threshold and liquidates automatically at 90% LTV. Arch issues a margin call at 70% LTV with a 24-hour response window and liquidates at 80% LTV. For a common 50% starting LTV (rather than each lender's maximum), the modeled buffers are 40 points at Lygos and 30 points at Arch.
It depends on your priorities. Lygos (10% APR, non-custodial (DLC), min $25,000) is better for borrowers who prioritize non-custodial security and want a flat transparent rate. Arch (7.25%–10.49% 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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