Is there real demand for BTC-based loans?

Been holding BTC for a while, and I steer clear of wrapped versions and all that cross-chain stuff. Too much trust needed for my taste. Just found a public testnet that lets you borrow against native BTC, so I gave it a shot to see what it’s about. Now I’m curious if this is something the Bitcoin community actually wants.

Need to figure out the security model for this lending thing. Custody is key, right? If we want to stand apart from centralized lenders, there has to be a way for users to keep some access to their BTC. Also, I’m wondering if loan repayment locks in the BTC value at the borrowing point or at repayment time.

Babylon is almost up and running, and if they’re doing it, then there's definitely interest. But let’s be real, Bitcoin was never designed for DeFi lending in the first place. Just a heads up, whatever you get into carries risks. I still prefer just to hold BTC rather than dabble in lending.

True, there are legit projects out there, but people should only use their own funds. That’s the safest way to go, whether you’re investing, trading, or whatever. If you borrow money, you’re taking on a risk, and it gets complicated.

Exactly, I’m trying to see if this is actually feasible. On paper, it sounds better than wrapped BTC or custodial lending, but security is key. I’m less interested in borrowing and more in using native BTC as collateral without adding too many trust issues.

The world runs on debt, but dealing with Bitcoin, which is both volatile and deflationary, adds a whole new layer of risk. Sure, taking a loan against BTC might be better than selling, but you need a good reason to do it.

Right, I was looking at Babylon too. The testnet caught my eye not because I wanted to borrow, but to see if they could manage native collateral without wrapping or handing my coins to someone else. If they can pull that off, it could be a neat tool, but I’m cautious.

I want only to hold real Bitcoin on its blockchain. Wrapped BTC? Nah. I do sometimes use wrapped chains for transfers, but my real trust lies with Bitcoin in my own wallet. I’ve borrowed from the forum before but never used BTC as collateral.

We did have a lending platform before, not sure about its current status, but trusting someone to lend BTC as collateral kinda defeats Bitcoin's whole purpose. Yeah, selling your BTC is the simplest answer, but the world thrives on debt, and Bitcoin needs to be managed differently.

Same here, I just can’t get into wrapped BTC. It feels like an added layer of risk. That’s why I tried the testnet not for DeFi, but to see if using native BTC as collateral could work without extra compromises.

That's what I was thinking too. Centralized platforms to borrow against BTC never looked good; you’re still trusting a third party. The testnet I tried focused on using native BTC as collateral instead of wrapping it, which I find intriguing.

I keep hearing this thing about using Bitcoin as collateral, like it’s some kind of magic trick for infinite cash. But honestly, I prefer to just hold and not risk my BTC for loans. I’m more old-school like that.

What's up with calling native BTC sBTC? Bitcoin doesn’t have DeFi, and any gateway for using BTC in DeFi seems too centralized. With all the recent hacks, I think it’s better to stay away.

Why use BTC as collateral when you can just hold it safely? True Bitcoiners stash their coins in non-custodial wallets and don’t need to borrow against them. They get how valuable BTC is and know it’s better to just hold.

People use Bitcoin as collateral so they can get cash without triggering tax events from selling. Some folks do it to avoid selling their coins. But finding a native platform that doesn’t require wrapping or centralization is the real challenge.

I can’t stand borrowing money or crypto. What do you mean by "trust-minimized way"? If the BTC collateral isn’t with the lender, it just shifts trust to another third party. Lending has worked, but the real issue is BTC price swings, not trust.

Which platform did you try? Was it Babylon? I’ve known them for a while but haven’t tested it yet. If you’re new, you can make your BTC a productive asset without wrapping or third-party custody.

If there’s significant interest in BTC-backed lending, even with third-party involvement, surely there’s interest in non-custodial options too. But honestly, I’d sell my Bitcoin if I really needed the cash. Why take 1k for Sats worth 2k?

I’d consider it if there’s decent yield. Using native BTC or wrapped BTC is similar; both require trust in a third party. If the security model is solid and backed by a reliable party, maybe it’s worth looking into.

Babylon supports native staking but sBTC isn’t a thing for them. Their setup uses time locks in self-custodial vaults. Honestly, these staking and lending options don’t seem worth the risk with Bitcoin. Better to keep it safe.