Bitcoin Loan Comparison

Lygos vs. Coinbase

Lygos charges 10% APR with $0 origination fees using non-custodial (DLC). Coinbase charges a variable 5.1%+ APR with a 1%–2% processing fee using custodial (cbBTC on Morpho / Base). See the full breakdown of rates, thresholds, and custody risk below.

Terms checked individually — Lygos: 2026-09-29; Coinbase: 2026-08-28.

How do Lygos and Coinbase compare for Bitcoin-backed loans?

For the standardized $250,000, 50% LTV, 12-month scenario, Lygos is 10% APR and Coinbase is 5.1%+ variable APR. Lygos: 50% LTV · 12-month term. Because at least one price is variable or account-tier dependent, the comparison is an estimate rather than a rate winner.

Coinbase charges a processing fee of 2% on the first $250K drawn (1% above) that is added to the loan principal and itself accrues interest — a fee that raises the effective cost above the headline rate from the day you borrow. 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.

Lygos vs. Coinbase: Feature-by-Feature Comparison

Lygos

Coinbase

Interest Rate (APR)

10%

5.1%+ variable

Pricing Basis

Flat rate

Fees / Charges

$0Lygos

2% processing fee

Max Starting LTV

70%

75%Coinbase

Margin Call Threshold

At-risk alert at 80%; no mandatory call

None — direct liquidation

Liquidation Threshold

90% LTVLygos

86% LTV

Margin Call Window

No margin-call window

Custody Model

Non-custodial (DLC)Lygos

Custodial (cbBTC on Morpho / Base)

Rehypothecation

Interest Payment

Monthly

Capitalized

Minimum Loan

$25,000

NoneCoinbase

Cost on a $250,000 Loan: Lygos vs. Coinbase

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; Coinbase pricing varies by account. Actual offers can differ when those inputs change.

Loan Size	Lygos APR	Coinbase APR	Lygos Total Year-1 Cost	Coinbase Total Year-1 Cost	Savings
$250,000	10%	5.1%+ variable	$25,000	$18,341	Estimate only

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. Coinbase: 2% processing fee. Lygos: $0 origination fee. Variable or account-tier pricing remains an estimate and is not awarded a winner. Terms checked individually — Lygos: 2026-09-29; Coinbase: 2026-08-28.

Custody and Collateral Security

Lygos and Coinbase 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. Coinbase uses custodial (cbBTC on Morpho / Base). 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: Low (Non-Custodial)

•Non-custodial (DLC)
•Rehypothecation: No
•Monthly interest payments

Coinbase: High (Custodial)

•Custodial (cbBTC on Morpho / Base)
•Rehypothecation: No
•Interest capitalized (compounding)
•Low headline rate, but a processing fee — 2% on the first $250K borrowed, 1% above — is added to your principal on every draw and itself accrues interest.

Margin Call and Liquidation: Lygos vs. Coinbase

Lygos: At-risk alert at 80%; no mandatory call. Positions liquidate at 90% LTV. Coinbase has no mandatory margin-call step; positions liquidate automatically at 86% LTV.

Threshold	Lygos	Coinbase
Max Starting LTV	70%	75%
Margin Call	At-risk alert at 80%; no mandatory call	None — direct liquidation
Margin Call Window	No margin-call window	No margin-call window
Liquidation	90% LTV	86% LTV

Safety Buffer at Each Lender's Maximum Starting 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). Coinbase: 11.0 percentage point modeled buffer between maximum starting LTV (75%) and liquidation (86% LTV). Lygos provides a wider safety margin.

Which is better: Lygos or Coinbase?

The choice between Lygos and Coinbase 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. Coinbase has no published minimum, using custodial (cbBTC on Morpho / Base).

The standardized table shows a first-year estimate, but at least one lender still prices by a variable rate or account tier. Treat the dollar totals as scenario estimates, not a definitive cheaper-lender ranking.

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. Coinbase uses custodial (cbBTC on Morpho / Base). 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. Coinbase is the better fit for borrowers who need smaller loans or more flexible access.

Key details to be aware of: Coinbase: Low headline rate, but a processing fee — 2% on the first $250K borrowed, 1% above — is added to your principal on every draw and itself accrues interest. The rate is variable, set by Morpho market utilization, and has spiked above 8% (Aug 2025).

Frequently Asked Questions

Is Lygos or Coinbase cheaper for a $250,000 Bitcoin-backed loan?

The standardized $250,000, 50% LTV, 12-month estimate is $25,000 for Lygos and $18,341 for Coinbase. Because at least one rate is variable or account-tier dependent, this is not a definitive cheaper-lender ranking.

How does Lygos's custody model compare to Coinbase?

Lygos uses non-custodial (DLC). Coinbase uses custodial (cbBTC on Morpho / Base). Lygos presents lower custody risk because your collateral is locked on the Bitcoin blockchain where no party can access it.

What is the minimum loan amount at Lygos vs Coinbase?

Lygos's minimum loan is $25,000. Coinbase has no published minimum. Coinbase is more accessible for smaller borrowers.

What happens if Bitcoin drops while I have a loan with Lygos or Coinbase?

Lygos has no formal margin-call threshold and liquidates automatically at 90% LTV. Coinbase has no formal margin-call threshold and liquidates automatically at 86% LTV. For a common 50% starting LTV (rather than each lender's maximum), the modeled buffers are 40 points at Lygos and 36 points at Coinbase.

Should I use Lygos or Coinbase for a Bitcoin-backed loan?

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. Coinbase (5.1%+ (variable) APR, custodial (cbBTC on Morpho / Base), no minimum) is better for borrowers who value custodial (cbBTC on Morpho / Base) and need smaller loan access. Use the rate table and cost comparison above to model your specific scenario.

Other comparisons

Lygos vs Ledn Lygos vs SALT Lygos vs Nexo Lygos vs Arch Lygos vs Strike Lygos vs Figure Lygos vs Lava Lygos vs Unchained

Understand the key terms

Rehypothecation Discreet Log Contracts Custodial vs. Non-Custodial LTV Ratio Margin Call Counterparty Risk

See loan scenarios

$100K Loan $500K Loan $1M Loan Borrow Against 10 BTC

Compare Your Loan

Already borrowing with Coinbase? See your interest savings, terms head-to-head, and counterparty risk on your own numbers.

Open Loan Comparison Calculator

Compare for yourself. Borrow at 10% APR with $0 fees.

See why borrowers choose Lygos over Coinbase for Bitcoin-backed liquidity without custody risk.

Calculate Your Loan