Understanding Lending

Why Lend Instead of Holding Stablecoins or Fiat?

We've all seen it. Sitting on stablecoins or fiat that earn nothing, slowly losing purchasing power due to inflation and central bank meddling.

At Lendasat, we believe your capital should work for you, not sleep in a wallet or bank account.

That's why we've built a secure, peer-to-peer lending platform that lets you lend stablecoins or fiat and earn Bitcoin-backed returns.

This strategy reflects the logic of smart capital allocation:

Deploy capital, manage risk, earn predictable income.

With Lendasat, you set the terms: the LTV, the APR, the duration.

The borrower locks up BTC as collateral in a 2/3 multisig vault.

You get paid at maturity or monthly, no matter what happens.

Why Lending Beats Traditional Yield Strategies

Holding idle assets comes with hidden costs:

• You miss out on yield opportunities
• You lose value through inflation
• You take on platform risk if using centralized services

Lending on Lendasat, by contrast, gives you:

• Access to non-custodial, Bitcoin-backed loans
• Safe principal and interest repayments
• Full control over your risk (through LTV and loan terms)
• A simple, transparent way to earn yield

It's the smartest way to put your capital to work, while helping Bitcoiners unlock their liquidity without selling.

How Much Can You Earn? A Simple Scenario

Let's say you lend $1,000 to a borrower at 10% APR for a 12 month term.

• You set a 50% LTV ratio, meaning the borrower will have to lock $2,000 worth of BTC into multisig 2/3
• After 12 months, you receive $1,100 back (your $1,000 + 10% interest)
• The borrower keeps their BTC, you earned a predictable return

No price exposure. No custody risk. No surprises.

Just stable, fixed-income backed by digital gold (Bitcoin).

What Happens if the Market Drops?

If the BTC price falls significantly during the loan, the LTV increases.

As soon as the LTV hits 90%, you will receive an alert inviting you to trigger liquidation.

In that case:

• The borrower's BTC collateral is sold
• You receive your principal and interest in full, directly
• Any excess BTC is returned to the borrower

Thanks to the multisig and manual triggers, you're always protected, even in volatile conditions.

Lending Step-by-Step

Here's how lending works on Lendasat:

1. Create your lender profile and secure your wallet
2. Define your loan offer: choose the LTV, APR, duration, and amount
3. Set your preferred payout asset and network (USDC, USDT, fiat, etc.)
4. Wait for a borrower to accept your offer
5. When the BTC collateral is locked, send the loan principal
6. Receive full repayment (principal + interest) at maturity, monthly or automatically in case of liquidation

All without managing custody. All with your capital secured by Bitcoin.

Next Steps

• Learn about contract terms for lenders
• Follow a step-by-step tutorial to lend stablecoins
• Explore lending fiat