Bitcoin Loan Comparison

Lygos vs. Unchained

Lygos charges 10% APR with $0 origination fees using non-custodial (DLC). Unchained charges 14.18% APR with a 2% origination fee using collaborative multisig (2-of-3). See the full breakdown of rates, thresholds, and custody risk below.

Terms checked individually — Lygos: 2026-09-29; Unchained: 2026-05-14.

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

For the standardized $250,000, 50% LTV, 12-month scenario, Lygos is 10% APR and Unchained is 14.18% APR. Lygos: 50% LTV · 12-month term. Unchained: 12-month loan with 2% origination included in APR.

Unchained's published APR already includes 2% origination fee. Lygos charges no origination or processing fees — interest is the only cost.

On a $250,000 loan held for 12 months, Lygos saves $10,450 in total first-year cost (interest plus applicable fees or charges).

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

Lygos vs. Unchained: Feature-by-Feature Comparison

Lygos

Unchained

Interest Rate (APR)

10%Lygos

14.18%

Pricing Basis

Flat rate

12-month commercial loan

Fees / Charges

$0Lygos

2% origination fee

Max Starting LTV

70%Lygos

50%

Margin Call Threshold

At-risk alert at 80%; no mandatory call

67% LTVUnchained

Liquidation Threshold

90% LTVLygos

83% LTV

Margin Call Window

No margin-call window

24 hoursUnchained

Custody Model

Non-custodial (DLC)Lygos

Collaborative multisig (2-of-3)

Rehypothecation

Interest Payment

Monthly

Minimum Loan

$25,000Lygos

$150,000

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

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; Unchained pricing varies by 12-month commercial loan. Actual offers can differ when those inputs change.

Loan Size	Lygos APR	Unchained APR	Lygos Total Year-1 Cost	Unchained Total Year-1 Cost	Savings
$250,000	10%	14.18%	$25,000	$35,450	$10,450 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. Unchained: 2% origination fee — already included in APR. Lygos: $0 origination fee. Terms checked individually — Lygos: 2026-09-29; Unchained: 2026-05-14.

Custody and Collateral Security

Lygos and Unchained 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. Unchained uses collaborative multisig (2-of-3). Multiple key holders must coordinate to move funds, reducing single-point-of-failure risk but still requiring trust in the key coordination process.

Lygos: Low (Non-Custodial)

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

Unchained: Medium (Multisig)

•Collaborative multisig (2-of-3)
•Rehypothecation: No
•Monthly interest payments
•Commercial/institutional only since Jan 2024.

Margin Call and Liquidation: Lygos vs. Unchained

Lygos: At-risk alert at 80%; no mandatory call. Positions liquidate at 90% LTV. Unchained triggers margin calls at 67% LTV and liquidates at 83% LTV. Unchained 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	Unchained
Max Starting LTV	70%	50%
Margin Call	At-risk alert at 80%; no mandatory call	67% LTV
Margin Call Window	No margin-call window	24 hours
Liquidation	90% LTV	83% 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). Unchained: 33.0 percentage point modeled buffer between maximum starting LTV (50%) and liquidation (83% LTV). Unchained provides a wider safety margin.

Which is better: Lygos or Unchained?

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.

Frequently Asked Questions

Is Lygos or Unchained 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 Unchained costs $35,450 (14.18% APR). That is a $10,450 difference in the first year.

How does Lygos's custody model compare to Unchained?

Lygos uses non-custodial (DLC). Unchained uses collaborative multisig (2-of-3). 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 Unchained?

Lygos's minimum loan is $25,000. Unchained's minimum is $150,000. Lygos is more accessible for smaller borrowers.

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

Lygos has no formal margin-call threshold and liquidates automatically at 90% LTV. Unchained issues a margin call at 67% LTV with a 24-hour response window and liquidates at 83% LTV. For a common 50% starting LTV (rather than each lender's maximum), the modeled buffers are 40 points at Lygos and 33 points at Unchained.

Should I use Lygos or Unchained 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. Unchained (14.18% APR, collaborative multisig (2-of-3), min $150,000) is better for borrowers who value collaborative multisig (2-of-3) and prefer this platform's lending structure. 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

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

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