Better (Safer) Bitcoin Loans with Lygos Finance with Jay Patel & Matthew Black
Tue Nov 25 2025
Subscribe to the Built on Bitcoin Newsletter: https://builtonbitcoin.beehiiv.com/
Lending is the single biggest use case for Bitcoin.
Full stop.
To capture the benefits of your appreciated Bitcoin you've been holding for so long. You have two options:
1. To sell and pay the tax
2. Take a loan, pay some amount of interest, and still get the upside if the price increases.
In this episode, we sit down with Matthew Black and Jay Patel, founders of Lygos Finance, to discuss the future of non-custodial Bitcoin lending.
We dive deep into Discreet Log Contracts (DLCs), why they might be the "Holy Grail" for Bitcoin-backed loans, and how Lygos is building a platform that gives you 50% LTV liquidity while keeping your keys (mostly) in your pocket. We also cover the "interest rate inversion" between DeFi and CeFi, and why institutional capital is finally waking up to Bitcoin as pristine collateral.**Timestamps:**00:00 Intro01:26 From Atomic Swaps to Bitcoin Loans (Matthew's Story)02:53 Lessons from the BlockFi/Celsius Blowups05:55 Why They Pivoted from Options to Loans10:13 Why DLCs are the Holy Grail for Lending18:34 Lygos Product Walkthrough: How it Works27:42 The Truth About "Trustless" (Oracle Risk Explained)37:26 The Capital Markets Thesis: Why Institutions Want In43:23 The Interest Rate Mystery: DeFi vs CeFi48:40 Bitcoin Upgrades: CTV, CAT & Covenants**Links & Resources:**- Lygos Finance: https://www.lygos.finance/- Follow Lygos on X: https://x.com/LygosFinance- Follow Matthew: https://x.com/matthewjablack- Follow Jay: https://x.com/jaypatel
More
Subscribe to the Built on Bitcoin Newsletter: https://builtonbitcoin.beehiiv.com/ Lending is the single biggest use case for Bitcoin. Full stop. To capture the benefits of your appreciated Bitcoin you've been holding for so long. You have two options: 1. To sell and pay the tax 2. Take a loan, pay some amount of interest, and still get the upside if the price increases. In this episode, we sit down with Matthew Black and Jay Patel, founders of Lygos Finance, to discuss the future of non-custodial Bitcoin lending. We dive deep into Discreet Log Contracts (DLCs), why they might be the "Holy Grail" for Bitcoin-backed loans, and how Lygos is building a platform that gives you 50% LTV liquidity while keeping your keys (mostly) in your pocket. We also cover the "interest rate inversion" between DeFi and CeFi, and why institutional capital is finally waking up to Bitcoin as pristine collateral.**Timestamps:**00:00 Intro01:26 From Atomic Swaps to Bitcoin Loans (Matthew's Story)02:53 Lessons from the BlockFi/Celsius Blowups05:55 Why They Pivoted from Options to Loans10:13 Why DLCs are the Holy Grail for Lending18:34 Lygos Product Walkthrough: How it Works27:42 The Truth About "Trustless" (Oracle Risk Explained)37:26 The Capital Markets Thesis: Why Institutions Want In43:23 The Interest Rate Mystery: DeFi vs CeFi48:40 Bitcoin Upgrades: CTV, CAT & Covenants**Links & Resources:**- Lygos Finance: https://www.lygos.finance/- Follow Lygos on X: https://x.com/LygosFinance- Follow Matthew: https://x.com/matthewjablack- Follow Jay: https://x.com/jaypatel