Introduction to Lygos
In a significant shift in the cryptocurrency lending space, the founders of Atomic Finance, Tony Cai and Matthew Black, have officially launched Lygos—a new lending platform focused on serving institutional clients through non-custodial bitcoin loans. Jay Patel and Francis Corvino head this initiative, which incorporates Atomic’s innovative discrete log contract (DLC) technology and intellectual property.
Background and Achievements
This strategic pivot comes after Atomic Finance has facilitated impressive trading activities, processing around $140 million in volume and securing approximately $25 million in Bitcoin total value locked (TVL) while maintaining a strong security record, with no hacks reported.
Features of Lygos
The new platform, Lygos, aims to provide a fresh approach to cryptocurrency lending by offering bilateral credit products that leverage Bitcoin’s Layer 1 as collateral and generate stablecoins on the Ethereum network without relying on wrapped tokens, bridges, or any third-party custody.
Loan Offerings
With Lygos, loans for institutional and high-net-worth individuals will range from $25,000 to as much as $100 million, utilizing DLCs to ensure predictable loan outcomes and facilitating oracle price attestations.
Transition and User Advisory
As this new venture takes shape, Atomic’s consumer-focused app will be phased out in the coming month, and current users are advised to securely store their seed phrases to access their funds in the future.
Vision and Onboarding
The founders emphasize that this development represents a “third way” for borrowers, balancing the dangers of custodial risk with the potential pitfalls associated with smart-contract vulnerabilities that have led to significant financial losses in various cross-chain decentralized finance (DeFi) activities.
Lygos is currently commencing the onboarding process for its first group of lenders and borrowers, marking an exciting advancement in the realm of bitcoin-native financial services.
