Is Debifi the Future of Crypto Loan Systems?

Is Debifi the Future of Crypto Loan Systems?

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Jonathan
Jonathan

An editor at Coincrop


06 Sept 2022 | 2 min read
11,751 views

T

he group is working on a new platform, Debifi, which will enable users to borrow long-term loans in Stablecoins and Fiat money using their bitcoin as collateral. Both fiat and Stablecoin lenders have expressed interest in participating in Debifi.

The new platform has gained support from two companies, centralized exchange Bitfinex and crypto financial company XBTO. Both of these companies have agreed to provide liquidity for the new platform.

Debifi, USP is their customer protection, as bitcoin is locked into a multi-signature loan that requires three out of four keys to unlock it. This way, in the event of a dispute between the parties, they can step in and make sure that the bitcoin goes to the prevailing side.

The fourth key is meant to strengthen the new platform’s security: if a scammer or a hacker wanted to abuse the protocol and steal money from escrow, they would have to compromise not just the platform’s key but also the one held by Casa, Blockstream or Jan3.

Will the next big thing be non-custodial lending platforms for banks?


Jonathan

Jonathan

An editor at Coincrop
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Jonathan is a Coincrop staff writer based in the UK, covering the best rates for cryptocurrency earning and borrowing products. When not at work, he's likely sailing.


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