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How do DeFi loans work?

Updated this week

  1. Review available offers

    Borrow shows you multiple DeFi loan options with:

    • interest rate (APR)

    • LTV

    • fees

    • liquidation price

    • collateral type (native or wrapped BTC)

  2. Select a lender

    You simply click on the best DeFi offer and confirm Select a lender.
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  3. Send BTC to the generated deposit address

    Borrow generates a unique Bitcoin address for your loan.

    You send BTC to this address from your wallet.

  4. Collateral processing (handled automatically)

    After confirmation:

    • BTC is prepared for the selected DeFi protocol

    • wrapping or bridging (if required) happens automatically

    • collateral is supplied to the smart contract

    You approve all required actions in the wallet.

  5. Receive stablecoins in your wallet

    Once the collateral is supplied, stablecoins are issued and sent directly to your self-custodial wallet.

Key points about DeFi loans

  • The full flow happens inside Borrow

  • No redirection to external sites

  • All steps are transparent and approval-based

  • Loan logic is enforced by smart contracts

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