The choice between Lygos and Unchained 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. Unchained focuses on larger borrowers starting at $150,000, using collaborative multisig (2-of-3).
On the standardized $250,000, 50% LTV, 12-month scenario, Lygos costs $25,000 in the first year versus $35,450 at Unchained, a difference of $10,450. 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. Unchained uses collaborative multisig (2-of-3). 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. Unchained is the better fit for borrowers who are borrowing $150,000 or more and want collaborative key control.
Key details to be aware of: Unchained: Commercial/institutional only since Jan 2024. Published pricing is 12% interest, 2% origination, and 14.