<p>Subscribe to the Built on Bitcoin Newsletter: https://builtonbitcoin.beehiiv.com/</p><p><br></p><p>Lending is the single biggest use case for Bitcoin. </p><p>Full stop. </p><p>To capture the benefits of your appreciated Bitcoin you&#39;ve been holding for so long. You have two options:</p><p>1. To sell and pay the tax </p><p>2. Take a loan, pay some amount of interest, and still get the upside if the price increases.</p><p>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.</p><p>We dive deep into Discreet Log Contracts (DLCs), why they might be the &quot;Holy Grail&quot; 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 &quot;interest rate inversion&quot; 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&#39;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 &quot;Trustless&quot; (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 &amp; Covenants**Links &amp; 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</p>