【Lava】A platform offering BTC-backed loans / Evolving into a multifunctional service including loans, cards, USD yields, and salary-to-BTC conversion / @lava_xyz

I believe secured loans hold great potential.

Good morning.
I’m Mitsui, a web3 researcher.

Today I researched “Lava.”

What is Lava?
Transition and Outlook
Possibility of a secured loan

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TL;DR

• Lava is a financial platform that enables users to instantly borrow dollars using Bitcoin as collateral, evolving into a multifunctional service encompassing loans, cards, dollar yield, and salary-to-BTC conversion.

• Since its founding in 2022, the company has experienced rapid growth, transitioning from self-custody to cold storage management, adding new services like BLOC, and securing significant funding (over $200 million cumulative).

• Aiming for a world where “savings are held in Bitcoin and spending is done in dollars,” BTC-backed loans are likely to expand further into corporate and personal financial strategies.

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What is Lava?

“Lava” is a Bitcoin-backed financial platform.

Our flagship service is instant dollar-denominated loans secured by Bitcoin. By depositing their BTC with Lava, users can instantly gain dollar liquidity without selling their BTC.

The main service features and technical characteristics are summarized below.

Bitcoin-backed loan

Users can execute loans using BTC as collateral in as little as seconds (average 0.4 seconds). No credit checks or document submission are required, allowing flexible borrowing from as little as $100 up to over $1 billion. Loan interest rates start at a low fixed annual rate of 5%, with no monthly repayment obligations or borrowing term restrictions.

Company-issued Visa card

Lava offers a debit card integrated with the Visa network, allowing you to shop directly using borrowed dollar funds. Card spending is deducted from your loan balance, and up to 5% of the amount spent is returned as Bitcoin cashback.