A review of a borrower's financial history to determine their reliability and risk of default.
A review of a borrower's financial history to determine their reliability and risk of default. Lygos Finance's $25K–$100M loans are secured by Bitcoin locked in a non-custodial DLC rather than priced from a traditional consumer credit score.
Traditional lenders use credit checks to evaluate a borrower's past debt repayment behavior, which directly impacts the interest rates and loan amounts they are offered. A low credit score can disqualify individuals from accessing capital. In pure decentralized lending, credit checks are entirely replaced by overcollateralization mechanics.
Lygos Finance's $25K–$100M loans are secured by Bitcoin locked in a non-custodial DLC rather than priced from a traditional consumer credit score.
Understanding Credit Check is critical when comparing loan offers. This concept directly affects how much you pay, how much collateral you need, or what happens if market conditions change during your loan.
Starting at 10% APR, $0 origination fees, and DLC-secured collateral on the Bitcoin blockchain.