In this episode, Stephan Livera and Max K discuss the recent Baltic Honey Badger conference, highlighting the shift in focus from institutional adoption to innovative projects like Ark. They explore the workings of Debifi, a Bitcoin-backed lending platform, explaining its marketplace model, loan structures, and interest rates.
The discussion revolves around the evolving landscape of Bitcoin lending, focusing on the differences between custodial and non-custodial lending, the future growth of the market, and the implications for borrowers and lenders.
Max highlights the trade-offs between security and convenience, the increasing demand for non-custodial solutions, and the potential for lower interest rates as the market matures. The importance of understanding the risks involved in borrowing against Bitcoin and the need for responsible lending practice is emphasized as well.
Takeaways
🔸The Baltic Honey Badger conference shifted focus from institutional adoption to innovative projects.
🔸Ark was a significant revelation, showcasing seamless Lightning payments.
🔸Debifi operates as a marketplace connecting institutional lenders with Bitcoin borrowers.
🔸The platform uses multi-sig technology for secure Bitcoin-backed loans.
🔸Interest rates in Bitcoin lending average around 12%, with potential for lower rates as liquidity increases.
🔸Self-custody remains a challenge for many institutional lenders entering the Bitcoin space.
🔸Bitcoin-backed lending offers a unique opportunity for portfolio diversification.
🔸The market is gradually recognizing the value of Bitcoin as collateral for loans.
🔸Debifi aims to simplify the self-custody process for institutional lenders.
🔸The future of Bitcoin lending looks promising with increasing institutional interest. Many users prefer non-custodial lending for security reasons.
🔸The demand for Bitcoin-backed loans is expected to grow significantly.
🔸Borrowing against Bitcoin can help avoid capital gains taxes.
🔸Non-custodial lending offers more control over collateral management.
🔸Market predictions suggest lower interest rates in the future.
🔸The Bitcoin lending market is seen as a perfect storm for growth.
🔸Users are willing to pay more for non-custodial services.
🔸The importance of understanding LTV and liquidation processes is crucial.
🔸Multisig solutions can provide a seamless borrowing experience.
🔸The evolution of Bitcoin lending is driven by increasing market awareness.
Timestamps:
(00:00) - Intro
(00:55) - Key highlights of Baltic Honey Badger 2025
(04:51) - Ark & Layer 2 solutions; Impact on Bitcoin payments
(08:37) - What is Debifi?
(11:54) - Minimum loan thresholds and micro loans; Loan terms & duration
(14:43) - What are the interest rates?; Current Bitcoin lending market landscape
(18:05) - Sponsors
(19:52) - What is the value proposition of Bitcoin-backed lending?
(28:40) - The mental block for fiat investors; Self-custody of Bitcoin while lending
(33:42) - Custodial vs non-custodial models of Bitcoin lending
(43:54) - What are the use cases for the borrowers using Debifi?
(47:33) - LTVs & Liquidation percentages
(50:38) - Risk management with Debifi
(56:17) - What is the future of the Bitcoin lending market?
Links:
Sponsors:
Stephan Livera links:
Stephan Livera Podcast