5 posts tagged with "borrowing"

At Lendasat, our mission is to empower Bitcoiners with censorship-resistant, non-custodial lending tools, so you never have to sell your sats to access liquidity.

Lendasat already enables lending stablecoins, euros, dollars and prepaid cards, but what if we could take it even further? 👀

That's exactly where our new partner, Bringin, comes in. 🇪🇺⚡

🗝️ Your Bitcoin-backed loans powered by vIBANs​

Bringin is a platform that brings Bitcoin into the real world, without compromising on sovereignty. 🔒

It connects your self-custodial BTC and Lightning wallets with fiat tools like:

• ✅ Virtual IBANs
• ✅ SEPA transfers
• ✅ Debit cards.

Bringin's vIBANs allow Bitcoiners to receive euros easily, without opening a traditional bank account. Let's break it down:

Your euro account on Bringin is a vIBAN registered in your name, an important detail. When a bank detects transfers to or from a crypto exchange, it may block them. But with a personal vIBAN, the sender or recipient is you, not Bringin, making it harder for banks to flag the transaction as related to Bitcoin buying or selling. 🏦

Once the euros arrive, you can convert them to BTC and send them directly to your own wallet, Bringin never holds your sats. You can also make SEPA transfers to your bank or spend your euros with Bringin's debit card. 💳

This means that euros borrowed through Lendasat can now be instantly received and used via Bringin, all while staying true to the principles of the Bitcoin standard. 🟠

🌍 Bringin opens the euros lending market outside of EU borders​

One key point to highlight is that those loans are received by borrowers in euros, but the lender actually sends USDC over the Polygon network and Bringin handles the currency conversion automatically. 💱

In other words: you're not borrowing euros directly, you're borrowing USDC, which is seamlessly converted into euros. 💶

This changes everything.

While euros are a local currency limited to the EU, stablecoins like USDC are globally accessible. 🌐

Usually, borrowing euros means being restricted to the European lending market. But with stablecoins, the liquidity is global, offering access to more competitive interest rates outside of Europe. 📉

Thanks to Bringin's off-ramp, this global liquidity can be accessed and delivered locally in euros effectively bridging decentralized finance with real-world financial utility.

Getting Started with Bringin: Step-by-Step Guide​

1. Create a Bringin Account To receive your loan in euros on your personnel vIBAN, you'll need a Bringin account. Sign up on Bringin using your email address.

2. Join the Discord 💬

Join the Lendasat Discord server. This is where you'll receive your invite code to access the app.

2. Choose Your Role 🎭

Go to the #get-started channel. Select the "Borrower" role if you want to receive your loan in euros on Bringin. You'll get: An invite code and a link to the Lendasat App

3. Create Your Lendasat Account

Follow the app link and sign up using: your email, a password and the invite code Back up your seed phrase, it secures your Bitcoin-based collateral.

4. Connect Bringin to Lendasat 🔗

If you don't have a Bringin account, create one here. On Lendasat: Go to "Settings", then "Integrations". Enter the email address used on Bringin and click "Connect" Confirm the connection via the email you received from Bringin. Refresh the Lendasat page, you're ready to go!

5. Apply for a Loan 💰

Go to "Offers" then to "Find Offer" Choose: The loan amount, the loan duration and click the Bringin logo to receive funds in euros Review available offers based on: the interest rate, loan-to-Value (LTV) ratio, etc

6. Accept an Offer

Select an offer that suits your needs. Enter a Bitcoin address (preferably unused) where you'll receive your collateral back at the end of the duration. A chat with the lender will open: the lender will confirm the offer. You deposit your Bitcoin collateral. The lender sends the loan. You'll receive the funds in euros on your Bringin vIBAN.

🚀 Ready to unlock the value of your Bitcoin? Join Lendasat now and borrow cash without selling your BTC.

Wealthy individuals rarely sell their appreciating assets. Instead, they follow a simple yet powerful strategy: Buy, Borrow, Die. 🔑 They buy assets that appreciate over time, borrow against those assets when they need cash, and die without ever selling-passing their wealth to heirs with significant tax advantages.

This strategy allows them to:

Enjoy liquidity without triggering capital gains taxes Maintain ownership of appreciating assets Preserve wealth across generations

What if Bitcoiners could adopt the same wealth-building approach? Over time, many Bitcoin holders have gradually stopped trying to time the market. Instead, they've adopted a simpler, and often more effective, first step: HODLing

🔒But HODLing alone doesn't solve the liquidity problem. After all, who hasn't sold their bitcoin too early, only to watch it skyrocket days or weeks later? 🙃

🔮It's a classic mistake, one that's nearly impossible to avoid unless you have a crystal ball.

Bitcoin has been the best-performing asset of the past decade. So why even think about selling it? Doing so comes with significant risk.

That's exactly why Lendasat is building the most secure and user-friendly peer-to-peer lending platform for Bitcoin - so you can unlock the value of your BTC without ever needing to sell, completing the full "Buy, Borrow, Die" strategy for Bitcoin holders.

Don’t sell, borrow against your ₿itcoin​

Selling your Bitcoin can be a costly mistake, not just from an investment perspective, but also in terms of taxation and privacy. 🕵️

Realizing capital gains typically means paying taxes, and selling through a centralized exchange often requires revealing the origin of your funds on-chain, compromising your financial privacy.

Instead, Lendasat allows you to deposit your BTC as collateral and receive stablecoins 🪙, fiat currency 💵, or even a virtual credit card 💳 in return.

What difference does it make❓​

You don’t sell your Bitcoin, so you remain fully exposed to its future price appreciation. You get access to cash when you need it most, and you can repay later. 💆

Even better, this action is not taxable, since you're not realizing a gain. In other words, you can live off your Bitcoin while spending fiat, a currency that loses value every year.

Here is a practical example​

Imagine you own 1 BTC, and today, Bitcoin is trading at $100,000. You need short-term liquidity, let’s say $50,000, to fund a project, cover some expenses, or seize a business opportunity.

You have 2️⃣ choices: Sell your Bitcoin, or use it as collateral to borrow.

👉 In the 1st case, you sell half your BTC to receive $50,000. But that means you’ve exited your position. If Bitcoin’s price rises afterward, you’ll no longer benefit from the upside. You may also be subject to capital gains tax, depending on your country’s regulations.

And more importantly, you’ve given up part of a scarce asset, one with massive long-term potential, just to meet a short-term need.

👉 In the 2nd case, you choose not to sell. You deposit your 1 BTC as collateral on Lendasat and borrow $50,000 (50% of its value). The BTC remains yours, securely locked in a non-custodial multisig vault.

📈 Now imagine Bitcoin rises to $200,000. You could simply repay the $50,000 loan plus interest, and reclaim your BTC - now worth $200,000.

You accessed liquidity when you needed it, without selling, and fully benefited from the price appreciation.

Alternatively, you could use the increased value of your BTC to borrow again, covering future expenses without ever selling a single satoshi.

Had you sold half your BTC at the beginning, you would have missed out on a 100% price gain on that portion, and to access another $50,000 you’d have to sell the rest. But by using your BTC as collateral, you’d now have an asset worth $200,000 and a debt of only $50,000 - or perhaps $100,000 if you’ve borrowed again. You remain long BTC, while gaining access to fiat.

😑 If Bitcoin stays at $100,000, the outcome is still favorable. You repay the loan, recover your collateral, and meet your cash needs without ever exiting your position or triggering a taxable event. Your long-term exposure is fully preserved.

📉 If Bitcoin drops to $60,000, the situation becomes tighter. Your collateral value decreases, and your loan-to-value (LTV) ratio rises to 83%. If your LTV hits 90%, it means the value of Bitcoin has fallen below $55,556 - triggering liquidation.

In that case, Lendasat will sell part or all of your BTC to cover the loan. You lose the collateral, but you don’t owe anything beyond that - the debt is settled.

Even then, you had quick access to $50,000 exactly when you needed it and you did it without selling or relying on a bank.

This is precisely how wealthy individuals operate: they don’t spend their assets, they put them to work as collateral.

Selling an asset like Bitcoin is even riskier, because you’re giving up not just something valuable, but something with enormous potential. 💎

Bitcoin is transforming the financial landscape, not just as a digital currency but arguably as the best form of collateral for unlocking liquidity. At Lendasat, we're pioneering this shift by working towards a trustless, self-custodial lending platform that lets users borrow against their Bitcoin without selling it. Let's explore Bitcoin's unmatched value as collateral and how Lendasat's innovative approach — with Discreet Log Contracts (DLCs) and integrations — make borrowing secure, simple, and practical.

On November 26, 2024, we took a significant leap forward in revolutionizing Bitcoin-collateralized loans by launching PHASE 1 of our closed beta. Now that the dust has settled, it’s time to reflect on what we’ve learned, celebrate our wins, and chart the path forward.

“Get the bread you need without having to part with your corn.” Lendasat, 2024.

In August 2024, Lendasat introduced a novel loan protocol, designed to address the inherent risks of custodial lending platforms. By leveraging Bitcoin's self-custodial nature, the Lendasat protocol allows borrowers to secure loans without transferring ownership of their assets. If you haven’t had a chance to explore our whitepaper, this blog post will guide you through the protocol and its advantages.