Stephan Livera Podcast Are DLCs the Solution to Bitcoin Lending? with Matt Black & Jay Patel | SLP716
Feb 5, 2026
Jay Patel, an experienced lending professional from Anchorage now at Lygos Finance, and Matt Black, a Bitcoin developer who built Atomic Finance, discuss non-custodial Bitcoin lending using DLCs. They cover how DLCs work for loans, Magnolia oracle attestation, faster adapter-signature setups, competitive rates via trust-minimized infrastructure, global reach, funding with stablecoins, and potential Bitcoin upgrades that could simplify DLCs.
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Hardware Wallets Enabled By Adapter Signatures
- Hardware wallet support became feasible because adapter-signature code already exists in device libraries.
- Building applications around those libraries enables DLC interactions on devices like Ledger Vanadium.
Simplifying DLC Outcomes
- Lygos simplified DLC loan outcomes to three states: repaid, liquidated by price, or liquidated by maturity.
- Fewer outcomes reduce signing complexity, speed up setup, and improve user verifiability.
Choose DLCs To Minimize Arbiter Power
- Prefer DLCs over 2-of-3 multisig when you want reduced arbiter power and better privacy.
- Use DLCs because the oracle doesn't learn borrower/lender identities or contract details, lowering collusion risk.