Bitcoin Loan Comparison

Lygos vs. Ledn

Lygos charges 10% APR with $0 origination fees using non-custodial (DLC). Ledn charges 9.25%–11.49% APR with a 2% origination fee (waived for US/Canada) using custodial (segregated). See the full breakdown of rates, thresholds, and custody risk below.

Terms checked individually — Lygos: 2026-09-29; Ledn: 2026-09-02.

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

For the standardized $250,000, 50% LTV, 12-month scenario, Lygos is 10% APR and Ledn is 10.99% APR. Lygos: 50% LTV · 12-month term. Ledn: 12-month loan; published APR tier for the selected size.

Ledn charges a 2% origination fee (currently waived for US and Canada borrowers). Lygos charges no origination or processing fees — interest is the only cost.

On a $250,000 loan held for 12 months, Lygos saves $2,475 in total first-year cost (interest plus applicable fees or charges) — excluding Ledn's 2% origination fee, which is waived for US/Canada but applies elsewhere.

From a custody perspective, Lygos presents lower counterparty risk with its non-custodial (DLC) model.

Lygos vs. Ledn: Feature-by-Feature Comparison

Lygos

Ledn

Interest Rate (APR)

10%Lygos

10.99%

Pricing Basis

Flat rate

Loan size

Fees / Charges

$0 (waived for US/Canada)

Max Starting LTV

70%Lygos

50%

Margin Call Threshold

At-risk alert at 80%; no mandatory call

70% LTVLedn

Liquidation Threshold

90% LTVLygos

80% LTV

Margin Call Window

No margin-call window

Threshold-based

Custody Model

Non-custodial (DLC)Lygos

Custodial (segregated)

Rehypothecation

NoLygos

Yes

Interest Payment

Monthly

At maturity

Minimum Loan

$25,000

$500Ledn

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

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; Ledn pricing varies by loan size. Actual offers can differ when those inputs change.

Loan Size	Lygos APR	Ledn APR	Lygos Total Year-1 Cost	Ledn Total Year-1 Cost	Savings
$250,000	10%	10.99%	$25,000	$27,475	$2,475 with Lygos

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. Ledn: $0 (waived for US/Canada) — excluded from the total for the stated waiver. Lygos: $0 origination fee. Terms checked individually — Lygos: 2026-09-29; Ledn: 2026-09-02.

Custody and Collateral Security

Lygos and Ledn 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. Ledn uses custodial (segregated). 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. Ledn also rehypothecates deposited assets, meaning your collateral may be lent to third parties.

Lygos: Low (Non-Custodial)

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

Ledn: High (Custodial)

•Custodial (segregated)
•Rehypothecation: Yes
•At-maturity interest payments
•2% origination waived for US/Canada.

Margin Call and Liquidation: Lygos vs. Ledn

Lygos: At-risk alert at 80%; no mandatory call. Positions liquidate at 90% LTV. Ledn triggers margin calls at 70% LTV and liquidates at 80% LTV.

Threshold	Lygos	Ledn
Max Starting LTV	70%	50%
Margin Call	At-risk alert at 80%; no mandatory call	70% LTV
Margin Call Window	No margin-call window	Threshold-based
Liquidation	90% LTV	80% 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). Ledn: 30.0 percentage point modeled buffer between maximum starting LTV (50%) and liquidation (80% LTV). Ledn provides a wider safety margin.

Which is better: Lygos or Ledn?

The choice between Lygos and Ledn 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. Ledn serves a broader range starting from $500, using custodial (segregated).

On the standardized $250,000, 50% LTV, 12-month scenario, Lygos costs $25,000 in the first year versus $27,475 at Ledn, a difference of $2,475. 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. Ledn uses custodial (segregated) and rehypothecates deposited assets, meaning your collateral may be lent to third parties while your loan is active. 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. Ledn is the better fit for borrowers who need smaller loans or more flexible access.

Key details to be aware of: Ledn: 2% origination waived for US/Canada. No monthly payments; accrued interest and any applicable admin fee are due at maturity or refinance.

Frequently Asked Questions

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

Lygos is cheaper under the stated assumptions. On a $250,000 loan at 50% LTV held for 12 months, Lygos costs $25,000 (10% APR) while Ledn costs $27,475 (10.99% APR). That is a $2,475 difference in the first year.

How does Lygos's custody model compare to Ledn?

Lygos uses non-custodial (DLC). Ledn uses custodial (segregated) and rehypothecates deposited assets. 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 Ledn?

Lygos's minimum loan is $25,000. Ledn's minimum is $500. Ledn is more accessible for smaller borrowers.

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

Lygos has no formal margin-call threshold and liquidates automatically at 90% LTV. Ledn issues a margin call at 70% LTV (threshold-based, no fixed 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 Ledn.

Should I use Lygos or Ledn 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. Ledn (9.25%–11.49% APR, custodial (segregated), min $500) is better for borrowers who value custodial (segregated) and need smaller loan access. Use the rate table and cost comparison above to model your specific scenario.

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Understand the key terms

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

See loan scenarios

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