Introduction

As the world moves toward a decentralized future, Bitcoin-based companies are pioneering a new financial ecosystem. However, many of these companies face significant challenges when they need to access liquidity, especially in fiat currency, without compromising their Bitcoin holdings.

Cryptosteel, a well-established Bitcoin security company, found themselves in this exact situation. As they prepared to launch their latest product, Seed12, they needed to secure traditional fiat liquidity for production and marketing while adhering to their long-standing Bitcoin-first philosophy.

Through Debifi, Cryptosteel leveraged their Bitcoin holdings as collateral to secure a fiat loan, maintaining their financial independence and staying true to the Bitcoin ethos. This case study outlines how Cryptosteel successfully accessed liquidity using Debifi’s P2P lending platform, highlighting the key factors that make Debifi’s decentralized solution a game-changer for Bitcoin-first companies.

The Challenge

Launching a new product always requires significant financial resources, and Cryptosteel needed capital to cover production costs, supply chain management, and marketing efforts for the Seed12 product line. The traditional banking system posed a challenge, as it often views Bitcoin-based businesses as high-risk and requires non-Bitcoin collateral or unfavorable terms. Additionally, Cryptosteel was committed to holding their Bitcoin for the long term, given its potential for appreciation. Selling their Bitcoin to raise capital would not only incur tax liabilities but also reduce their long-term exposure to Bitcoin’s future value.

Traditional vs. P2P Lending Comparison:

According to Woj, CEO of Cryptosteel:

“Our biggest challenge was finding a financing option that didn’t require us to sell our Bitcoin. Traditional banks didn’t cater to Bitcoin businesses, and we were unwilling to dilute ownership through equity funding. Selling Bitcoin would have compromised our long-term position, so we needed a solution that allowed us to hold onto our Bitcoin while accessing the fiat liquidity required to launch Seed12.”

Debifi’s Solution

Debifi offers a revolutionary peer-to-peer lending platform that allows Bitcoin-based businesses to access fiat liquidity without selling their Bitcoin. Cryptosteel leveraged this platform to secure a loan by using their Bitcoin as collateral. Debifi’s non-custodial multisig setup ensures that Cryptosteel retains full control of their Bitcoin holdings throughout the process.

By using a 3/4 multisig arrangement, Cryptosteel’s Bitcoin was securely held in an escrow that required three out of four keys to approve any movement of funds. This arrangement provided an extra layer of security, as neither Cryptosteel nor Debifi had unilateral control over the Bitcoin. This feature was critical for Woj, who emphasized:

“The transparency of Debifi’s platform and the 3/4 multisig escrow setup gave us peace of mind. Unlike other lending platforms, we knew our Bitcoin wasn’t being rehypothecated. This was particularly important to us given the risks we’ve seen in the past with other platforms.”

Key Features of Debifi’s Platform:

• Non-custodial multisig escrow: Cryptosteel retained partial control of their collateral through the secure 3/4 multisig arrangement.
• Bitcoin-first philosophy: The platform supports Bitcoin-based businesses by providing liquidity without forcing them to sell their assets.
• Seamless P2P matchmaking: Cryptosteel was connected with institutional fiat lenders that understood the value of Bitcoin as collateral.

Max Kei’s Vision: Empowering Bitcoin-First Businesses

Max Kei, CEO of Debifi, explained how this collaboration with Cryptosteel aligns with his broader vision of providing liquidity to companies already operating on a Bitcoin standard. For Max, Debifi’s role is to empower businesses that have fully embraced Bitcoin and help them access traditional financial markets without compromising their commitment to Bitcoin.

Max Kei’s Comment:

“What we’re seeing with Cryptosteel is exactly what we envisioned when we built Debifi. We wanted to create a solution that allowed Bitcoin-first companies to unlock fiat liquidity without selling their Bitcoin. These businesses are the pioneers of the Bitcoin standard, and we want to support them in their mission to further Bitcoin adoption. Providing secure, verifiable collateral management through a non-custodial model was essential to ensuring that companies like Cryptosteel can continue to grow while staying true to their values.”

Kei’s vision emphasizes the need for businesses to maintain financial independence while bridging the gap between the decentralized Bitcoin world and the fiat-dominated economy. By creating a decentralized, peer-to-peer lending platform, Debifi allows companies like Cryptosteel to stay on the Bitcoin standard while expanding their operations into traditional markets.

Implementation: Launching Seed12 with P2P Lending

With the loan secured through Debifi, Cryptosteel was able to finance the production of Seed12, a next-generation Bitcoin storage solution, which was essential to their continued growth. The funds were used for:

• Production and supply chain costs: Ensuring that materials for the Seed12 devices were sourced and production started on time.
• Global marketing efforts: Cryptosteel used the funds to launch an international marketing campaign, increasing awareness of the Seed12 product and expanding their customer base.
• Maintaining operational liquidity: The loan gave Cryptosteel the breathing room to focus on growth without worrying about short-term cash flow issues.

Woj’s Comment on the Experience:

“The ability to unlock liquidity without selling Bitcoin was game-changing for us. Debifi’s platform allowed us to secure funding for Seed12 while maintaining long-term exposure to Bitcoin. The process was transparent, and their support team was always available to answer questions and guide us through the loan process. We couldn’t have asked for a better partner to help us stay true to our Bitcoin-first philosophy while expanding into traditional markets.”

Results

The partnership with Debifi allowed Cryptosteel to launch Seed12 on schedule and expand their global operations without compromising their Bitcoin holdings. By utilizing Debifi’s innovative P2P lending model, Cryptosteel was able to:

• Secure fiat liquidity without selling any of their Bitcoin.
• Maintain full control of their collateral through Debifi’s non-custodial multisig escrow setup.
• Expand their product line and strengthen their position as a leader in Bitcoin security solutions.

Key Outcomes:

• Successful launch of Seed12.
• Preservation of Bitcoin holdings.
• Increased global market reach through expanded marketing efforts.

Conclusion

The partnership between Cryptosteel and Debifi demonstrates how Bitcoin-first businesses can access traditional financial resources while staying true to their values. By leveraging Bitcoin as collateral, Cryptosteel secured the fiat liquidity necessary to launch their new product, Seed12, without selling their Bitcoin or diluting ownership.

Debifi’s team has created a solution that empowers Bitcoin-based businesses to thrive in a fiat-driven world, while still adhering to the principles of decentralization and financial independence. As more businesses follow in Cryptosteel’s footsteps, Debifi is poised to become the leading platform for P2P lending in the Bitcoin ecosystem.

Are you a Bitcoin business seeking to unlock new opportunities? 💡 Reach out to us! Our team is ready to help you secure the funding you need to grow.

Let’s turn your vision into reality!

info@debifi.com

When discussing lending on a Bitcoin standard versus an inflationary currency like the US dollar, we’re essentially dealing with two vastly different systems. To gain a deeper understanding of these differences, we spoke with Lau from NostrReport, who provided insights into the complexities of both systems.

Inflationary Currency: A System of Diminishing Value

In an inflationary system like that of the US dollar, the purchasing power of the currency decreases annually due to inflation. This devaluation means that over time, what you can buy with a dollar continually diminishes. However, there is a silver lining for borrowers: as the value of the dollar decreases, so does the real value of their debt. “Every year, what you can buy with a dollar decreases because the value of that dollar keeps going down thanks to inflation,” Lau explained, highlighting the benefit for those with long-standing debts like student loans. “Like if you got a student loan in 2002, paid a bit here and there, and it’s still not fully paid off — no worries, inflation has eaten away the real value of that loan. That’s financial repression in action.”

Bitcoin: A Deflationary Contrast

Contrasting sharply with inflationary systems, Bitcoin operates as a deflationary currency. Its capped supply of only 21 million coins means that its value is likely to increase over time. “Bitcoin’s value increases over time because there will only ever be 21 million of them,” Lau noted. In this system, “when you borrow against Bitcoin, your collateral is gaining value. The person who lends you money is actually taking on the risk because Bitcoin will likely be worth more in the future, while whatever fiat currency you borrowed is likely to be worth less.” This dynamic makes lenders cautious, likely resulting in shorter loan terms and lending only for projects that can justify the immediate risk.

The Impact of Recent Federal Rate Cuts

According to a recent CNBC report, the Federal Reserve cut interest rates in September 2024, a move that traditionally makes borrowing cheaper and stimulates economic activity by making credit more accessible and affordable. This rate cut could be particularly significant for Bitcoin lenders and borrowers. Lau NostrReport comments on the implications of such fiscal policies: “The Fed lowering rates makes money, or what are in fact loans, cheaper. Lowering the rates below inflation effectively erodes the value of the loan. Which is what we mentioned financial repression. This stacks, so the more you borrow the better.” This environment could enhance the benefits for Bitcoin holders looking to leverage their assets through loans, as lower interest rates make borrowing against Bitcoin even more attractive, offsetting some of the risks associated with its volatility.

Opportunities in Bitcoin Lending

Bitcoin’s appreciating nature offers unique opportunities for those looking to leverage their digital assets without selling them. By using Bitcoin as collateral to secure loans, borrowers can gain access to the fiat currency they need for immediate expenses while their Bitcoin continues to potentially increase in value over time.

• Economic Benefits for Lenders and Borrowers: Lenders that provide loans against Bitcoin collateral can attract customers who hold bitcoin and wish to retain it, tapping into a new customer base. For borrowers, this arrangement means they can maintain ownership of their Bitcoin and benefit from any future appreciation, a critical advantage given Bitcoin’s potential for long-term growth.
• Advantages for Making Large Purchases: Utilizing Bitcoin as collateral allows borrowers to make significant purchases or investments without liquidating their assets. This can be particularly beneficial for funding opportunities like real estate, education, or starting a business, providing flexibility without sacrificing investment positions in Bitcoin.
• Strategic Financial Management: With the right planning, borrowing against Bitcoin can be part of a broader financial strategy that balances immediate needs with future goals. This approach can help manage cash flow effectively while keeping Bitcoin investments intact, optimizing financial outcomes.

Debifi’s Role in Secure Bitcoin Lending

Debifi enhances the process by offering a secure and reliable platform for Bitcoin lending. Borrowers can feel confident as their collateral is protected in a multisig wallet, which not only secures the Bitcoin against unauthorized access but also ensures that it remains in their control, subject to the agreed terms of the loan. This setup minimizes risks associated with single-party custody and rehypothecation, where the collateral might otherwise be used by the lender for other purposes.

By leveraging multisig technology, Debifi provides a transparent and secure environment for both parties, ensuring that Bitcoin used as collateral is properly managed and preserved. This technology allows borrowers to continue benefiting from their Bitcoin’s potential appreciation, even as they use the value of their digital assets to meet current financial needs.

Conclusion

Using Bitcoin as collateral for a fiat loan offers a strategic advantage for those needing liquidity without forfeiting the potential gains of their digital assets. As Lau from NostrReport notes, “Using Bitcoin as collateral for a fiat loan is different, as long as you’re productive you’ll be able to pay the installments and your Bitcoin will be safe.” This reassurance is vital for borrowers who can plan their financial obligations such that they maintain the ability to meet loan repayments without sacrificing their investment in Bitcoin.

Platforms like Debifi play a crucial role in this process by providing a secure environment for such transactions. With multisig wallets and a commitment to never rehypothecate, Debifi ensures that borrowers’ Bitcoin remains protected and continues to appreciate in value, offering a balanced approach to financial management that maximizes both current liquidity and future potential.

The combined effect of strategic financial planning and favorable economic conditions, such as the recent rate cuts by the Federal Reserve, creates an opportune moment for Bitcoin holders. They can efficiently manage their assets to support both immediate financial goals and long-term investment growth, navigating the evolving landscape of digital finance with confidence and success.

Contact Information:

Follow Lau on Nostr

For more information, users can visit Debifi’s: Official Website | Twitter (X)

For press inquiries, users can contact:

communications@debifi.com

Debifi is revolutionizing peer-to-peer (P2P) lending with a platform designed for secure, non-custodial, over-collateralized and transparent Bitcoin-backed loans. Unlike traditional financial platforms, Debifi doesn’t hold users’ funds but instead relies on a 3-of-4 multisig solution. Funds are locked on the blockchain and are only released upon mutual agreement between parties, or in the case of a dispute, by Debifi acting as a neutral mediator. This model appeals to users looking to put their funds to work, either as a borrower or as a lender, in a secure and decentralized manner.

Debifi’s lending mechanism allows users to borrow against their Bitcoin, giving them access to stablecoins or fiat without having to sell their assets. This is particularly useful for those who want to maintain their Bitcoin holdings while leveraging them for liquidity. For lenders, Debifi provides a way to earn significant returns, offering flexibility in lending conditions.

How To Start

As a lender, first you will have to sign up and pass through a KYB (Know Your Business) process which is pretty straightforward, provided you hold the required licensing for loan issuance.

You can start by offering lower rates to build a reputation and gradually adjust these rates over time based on the market conditions. Borrowers and lenders communicate to each other directly, allowing for personalized terms and fostering repeat business relationships.

Consider using various stablecoins and networks to gain a better understanding of demand and optimize your lending strategy.

Loan Performance and Market Trends

Based on data provided by 100 Towers, a company who has signed over 300 contracts on both Lend at Hodl Hodl and Debifi platform, P2P lending demand seems to fluctuate hand-in-hand with Bitcoin’s price trends. For example, a significant number of loans were liquidated during Bitcoin’s bear market in 2021–2022, while early repayments surged as Bitcoin prices rose again in 2023 and 2024.

Interestingly, more than 50% of the loans on the platform are repaid early. This benefits the lenders, as they still receive the full interest, increasing their yield significantly. The starting APR (annual percentage rate) is approximately 20.2%, whereas the volume-weighted actual APR stands at 24.5%, which is significantly higher when compared to traditional finance. Moreover, the liquidation rate remains low, averaging around 6–8%, signaling that the vast majority of borrowers repay their loans successfully.

A unique aspect of the Debifi model is the option for borrowers to repay loans in Bitcoin, particularly during bear markets. This feature allows long-term Bitcoin holders to effectively dollar-cost average by lending stablecoins and receiving Bitcoin back when the price is lower, thereby accumulating more Bitcoin at a better average price.

Building a Portfolio and Strategy on Debifi

One of the most effective strategies for lenders on Debifi is to issue multiple smaller loans. While this requires some effort in communication and coordination with counterparties, the approach provides a faster loan turnover rate and can result in higher yields. Small loans also attract more borrowers, especially in markets where users are less interested in taking on large amounts of debt due to Bitcoin’s volatility.

During certain periods, such as the winter of 2022–2023, loan activity can drop significantly due to market conditions. However, savvy lenders can use this time to accumulate Bitcoin from early loan repayments, positioning themselves advantageously when market interest returns.

Advantages of Peer-to-Peer Lending

Debifi stands out in the lending space due to its transparent, non-custodial model. Unlike traditional platforms that often rehypothecated collateral (i.e., lend it out multiple times, creating counterparty risk), Debifi locks the collateral in a secure smart contract, giving both parties peace of mind.

Additionally, borrowers have the option to manage their loan’s risk by manually topping up their Bitcoin collateral without incurring any extra fees to the platform. This reduces the loan-to-value (LTV) ratio, offering more security and decreasing the likelihood of liquidation.

Common Use Cases for Debifi Loans

Many borrowers use stablecoins for arbitrage between exchanges, while others leverage borrowed funds to purchase more Bitcoin, hoping to benefit from future price appreciation.

Another practical application is for individuals facing capital gains taxes. By borrowing against their Bitcoin instead of selling it, they avoid triggering a taxable event, allowing them to manage their tax liabilities more effectively.

Additionally, during a bull run, borrowers can access liquidity without sacrificing potential gains from Bitcoin price increase.

Conclusion

Debifi offers a secure, flexible, and transparent solution for holders of Bitcoin looking to maximize the utility of their holdings without relinquishing control of their assets. With high early repayment rates, impressive yields, and a low liquidation rate, the platform is a great place for lenders to deploy their capital. Whether you’re looking to lend or borrow, Debifi presents a reliable, non-custodial alternative in the evolving landscape of decentralized finance. The platform’s commitment to security, transparency, and long-term sustainability makes it an appealing choice for anyone looking to engage in P2P lending using Bitcoin.

Contact Information:

For more information, users can visit Debifi’s: Official Website | Twitter (X)

For press inquiries, users can contact:

communications@debifi.com

[Riga, Latvia, 24th of August 2024] — During Baltic Honeybadger 2024, Max Keidun, CEO and founder of Debifi, made several groundbreaking announcements, unveiling a presentation that highlighted the harsh realities of how credit card interest rates are structured and introduced an innovative solution tailored for the modern retail market.

High Credit Card Rates: A Global Concern

Current credit card interest rates in the United States and the European Union are alarmingly high, averaging 25% and 18%, respectively. These rates are not just a reflection of borrowing costs but are significantly inflated due to the risk premium banks charge to cover losses from delinquent payments. In effect, responsible cardholders are shouldering the financial burden for the entire user base, with 3% of users defaulting on their payments.

A Revolutionary Solution: Bitcoin as Collateral

Debifi is pioneering a bold solution to this problem. By utilizing Bitcoin as collateral, the company can significantly reduce the need for inflated risk premiums. Bitcoin’s highly liquid, divisible, and secure nature makes it the perfect collateral option, accessible to everyone — not just the wealthy. This approach promises to lower credit card interest rates dramatically, from the current average of 28% down to around 16%.

Introducing Debifi Cards

Debifi Cards represent a new borrowing solution leveraging Bitcoin-backed multisig escrow. This non-custodial system allows users to borrow against their Bitcoin holdings without needing to sell them, all through an easy-to-use mobile app. Here’s how it works:

• Easy, On-the-Go Access: Borrowers simply go online using the Debifi mobile app, click “borrow,” lock in their Bitcoin in a multisig, choose from Debifi’s partner lenders, and receive a new one-time-use card or top up their existing reusable card.
• One-Time Use Prepaid Cards: These cards are ideal for secure, short-term needs, offering a unique way to manage funds without long-term commitment.
• Keep and Top Up: Revolutionizing the prepaid card industry, by partnering with Bitrefill Debifi allows EU users to keep the same card number and simply top it up as needed, making it perfect for recurring debits.

Expanding Reach: Global Partnerships

To ensure the ability to serve more regions, Debifi has partnered with The Bitcoin Company, enabling the offering of Debifi Cards in the USA, Mexico, Canada, Colombia, and Brazil. Additionally, collaboration with Bitrefill will extend services across the entire European Union. These partnerships ensure that more people can benefit from this innovative credit solution, with the convenience of topping up their cards easily and securely.

Max Keidun shared his vision for the future of Debifi Cards: “I imagine a world where everyone has the ability to keep their hard-earned money safe while still maintaining purchasing power, no matter the limitations imposed by traditional banking systems. With Debifi, we are leveling the playing field, enabling everyone to grow their holdings while actively participating in an ever-evolving economy.”

Introducing Tapsigners: Secure and Sustainable

Debifi is also introducing tapsigners, a groundbreaking physical card created by Coinkite the leading in security and hardware manufacturer that allows users to hold the keys to their multisig loans. This card acts as a security device, offering unprecedented convenience and security. Unlike traditional disposable payment cards, tapsigners are reusable, eco-friendly plastic cards that store keys permanently, providing a tangible, lasting solution in a digital world. Tapsigners are available for purchase on-site at Baltic Honeybadger and online at the ColdHold store for the EU and at Coinkite store for the rest of the world fully supported by Debifi.

Max also expressed his excitement about the introduction of tapsigners: “I’m thrilled to use our eco-friendly plastic cards like tapsigners, which truly give a new meaning to holding the keys to your financial freedom. These cards not only upgrade security for Debifi users but also set a new standard for what it means to have a card that accesses your actual money.”

Join the Future of Finance

Debifi invites everyone to follow their socials and check their website, where more details will be shared on how Debifi Cards and Satscards will revolutionize the credit industry. Those eager to be among the first to experience this new product can join the waitlist by emailing earlybird@debifi.com.

The Future Belongs to HODLers

Stay tuned for more announcements, including the much-anticipated launch of Debifi on iOS.

About Debifi

Debifi is a fintech company focused on redefining borrowing by using Bitcoin as collateral, allowing users to participate in the traditional economy without selling their assets and securing lower interest rates. Founded by Max Keidun, Debifi’s innovative approach empowers users to manage their finances through a non-custodial mobile app and a web interface.

Contact Information:

For more information, users can visit Debifi’s: Official Website | Twitter (X)

For press inquiries, users can contact:

communications@debifi.com

Debifi, one of the leading non-custodial Bitcoin-backed lending platform, has announced a dynamic growth roadmap during BTCPrague, widely recognized as Europe’s premier Bitcoin event, carries substantial weight. The association with such a reputable gathering further underscores the credibility of Debifi’s growth roadmap and their dedication to revolutionizing the lending industry. The roadmap includes the significant addition of fiat payments for their Bitcoin-backed loans, marking a major milestone in the company’s expansion plans.

As a global lenders aggregator, Debifi is committed to providing institutional-grade liquidity while maintaining transparency and security. The platform allows any financial institution worldwide to become a lender and compete in the free market. In alignment with their commitment to transparency and community engagement, Debifi plans to release their Debifi App as Open Source this July, embracing the power of FOSS (Free and Open Source Software). This strategic move aims to foster community building and accelerate adoption by allowing individuals to verify the security of the platform’s code.

Enhanced Security and Partnerships

Debifi has forged a significant partnership with Coinkite, a renowned provider of secure bitcoin wallets. This collaboration enables users to store their Debifi keys on Coinkite’s MK4 wallets, leveraging NFC technology for account signing and enhancing overall protection.

Furthermore, Debifi has joined forces with ACEMA Credit Czech, a.s. the leading provider of secured fiat loans in Central Europe. This partnership aims to augment Debifi’s liquidity, enabling users to access fiat loans directly deposited into their bank accounts by the end of June. By integrating fiat payments into their offerings, Debifi is allowing individuals worldwide to leverage their Bitcoin holdings while retaining ownership.

Market Landscape Impact

The current financial climate is witnessing a growing demand for secure and transparent lending solutions, particularly those that bridge the gap between traditional finance and the burgeoning Bitcoin economy. Debifi’s introduction of fiat payments and their Open Source initiative are poised to set new standards in the market, fostering increased trust and adoption among users and financial institutions alike.

Acema, impressed by Debifi’s innovative approach to securing collateral using Bitcoin, has pledged significant support by providing loan liquidity on the platform. Acema’s endorsement underscores the reliability and user-friendliness of Debifi’s solutions, further validating their commitment to security.

Leadership Insights

Max Kei, CEO of Debifi, expressed excitement about the partnership with ACEMA, stating, “”Debifi aspires to seamlessly connect traditional banking with the growing Bitcoin economy. By enhancing our liquidity through this partnership, we empower individuals who depend on traditional banking to expand their economic opportunities using Bitcoin.”

Credibility and Event Significance

Debifi’s announcement at BTCPrague, widely recognized as Europe’s premier Bitcoin event, carries substantial weight. The association with such a reputable gathering further underscores the credibility of Debifi’s growth roadmap and their dedication to revolutionizing the lending industry.

About Debifi

Debifi is a leading non-custodial Bitcoin-backed lending platform that provides institutional-grade liquidity while prioritizing transparency, security, and user-friendliness. By embracing FOSS and collaborating with industry leaders, Debifi aims to bridge the gap between traditional banking and the new bitcoin economy.

For more information, users can visit Debifi’s: Official Website | Twitter (X) | Linkedin

For press inquiries, users can contact:

communications@debifi.com

In the world of Bitcoin-backed loans, security and control over your assets are critical. At Debifi, we understand the importance of safeguarding your Bitcoin while providing the financial flexibility you need. Our innovative 3/4 multisig escrow system is designed to ensure your Bitcoin remains secure and untouched during the loan process, offering unparalleled peace of mind.

The Power of Multisig

Multisignature, or multisig, is a powerful feature that adds an extra layer of security to Bitcoin transactions. It requires multiple private keys to authorize a transaction, reducing the risk of theft or unauthorized access. In the context of Bitcoin lending, multisig ensures that no single party can unilaterally access or move the collateral, protecting the interests of both borrowers and lenders.

How Debifi’s 3/4 Multisig System Works

Our 3/4 multisig setup is designed to maximize security and trust:

1. Four Keys: In a 3/4 multisig system, four parties are involved in the loan agreement, but only three keys are required to authorize any transaction. This setup ensures that the Bitcoin collateral remains secure and can only be moved with the consensus of multiple parties.

2. Key Holders: The lender, the borrower, Debifi, and an authorized key holder (read our ToS to learn more about this independent company) each hold one key. This distribution ensures that no single party has complete control over the Bitcoin collateral.

3. Escrow Creation: When a loan agreement is initiated, the borrower’s Bitcoin is placed into a multisig escrow wallet. This wallet requires three out of four keys to move the Bitcoin, ensuring that all parties must agree before any action can be taken.

4. Loan Origination and Repayment: Throughout the loan term, the Bitcoin collateral remains securely locked in the multisig wallet. Once the loan is repaid, the collateral is promptly released back to the borrower, completing the transaction with full transparency and trust.

No Rehypothecation, Full Transparency

One of the major concerns in traditional lending platforms is the rehypothecation of collateral — where the lender uses the borrower’s collateral for other purposes, exposing it to additional risks. At Debifi, we eliminate this risk entirely. Our multisig system ensures that the collateral remains securely in the escrow wallet, untouched and unallocated for any other use. This approach guarantees that your Bitcoin is always safe and under your control.

Why Choose Debifi’s Multisig System?

- Security: With our 3/4 multisig system, your Bitcoin collateral is protected by multiple layers of security, significantly reducing the risk of theft or misuse.

- Control: You retain control over your assets throughout the loan term. The collateral can only be moved with your consent and that of the other key holders.

- Transparency: All transactions are recorded on Bitcoin’s public blockchain, allowing you to verify the status of your collateral at any time through any block explorer.

- Peace of Mind: Our non-custodial approach ensures that your Bitcoin remains your property, providing peace of mind that your assets are secure and will be returned upon loan repayment.

The Future of Secure Bitcoin Lending

At Debifi, we are committed to advancing the future of Bitcoin lending by providing secure, transparent, and trustworthy solutions. Our 3/4 multisig system is a testament to this commitment, offering you the ability to leverage your Bitcoin without compromising on security.

Join us in redefining the landscape of Bitcoin-backed loans, where you can confidently borrow against your Bitcoin with the assurance that your assets are protected by the most advanced security measures available.

For more information and to start leveraging your Bitcoin with Debifi’s secure lending platform, visit our website or contact our support team today.

Reach us:
Debifi: www.debifi.com
E-mail: support@debifi.com

Introduction

The landscape of Bitcoin lending has faced numerous challenges, from major market crashes to liquidity crunches and accusations of market manipulation. Amidst this tumultuous environment, trust in Bitcoin-based lending products has diminished. Yet, Max Kei, CEO of Debifi, argues that the issue lies not with Bitcoin but with the lending platforms built on top of Bitcoin. This case study explores how Debifi has crafted a solution that leverages Bitcoin’s inherent strengths to offer a decentralized, location-agnostic lending service. A notable application of this approach is Sylvia Brinded-Püls’ endeavor to establish “A Place to Be” an unschooling sanctuary in Madeira.

The Challenge

The Bitcoin lending sector has been plagued by failures, primarily due to reliance on custodial platforms and a misunderstanding of how yield works, leading to significant losses and dwindling confidence among users. Furthermore, traditional lending mechanisms have often been inaccessible to individuals based on their location or nationality.

Debifi’s Solution

Debifi has redefined the lending landscape by leveraging Bitcoin as super collateral, underpinned by its inherent liquidity, programmability, scarcity, and security. Establishing a non-custodial, peer-to-peer lending model, Debifi transcends traditional financial boundaries, offering a decentralized solution that is not constrained by geography or nationality. Beyond its innovative 3/4 multisig setup, which enhances security by necessitating three out of four keys for transactions, Debifi stands out for its unique approach to connecting institutional lenders with borrowers, seamlessly onboarding them to the Bitcoin standard.

This connection is facilitated through Debifi’s comprehensive suite, eliminating the need for institutions to develop their infrastructure. Our platform’s ease of use, combined with a deep commitment to the ethos of Bitcoin — emphasizing the importance of holding your keys and avoiding the rehypothecation of Bitcoin — sets Debifi apart. We empower users to retain control over their assets, aligning with the principles of security and autonomy that are central to the Bitcoin community. By providing a full-suite solution, Debifi not only simplifies the lending process for institutions but also upholds the values of not rehypothecating Bitcoin, a crucial aspect that reinforces our commitment to the integrity and independence of our users’ investments.

Implementation: Sylvia’s Unschooling Sanctuary

In the implementation of Sylvia’s Unschooling Sanctuary, a groundbreaking educational initiative based in Madeira, Debifi played a crucial role by seamlessly connecting Sylvia with a compatible lender who shared her vision for transforming education. Sylvia, one of the first lenders on Debifi, leveraged the platform to secure loans using Bitcoin as collateral. This highlighted Debifi’s capacity to support innovative projects that transcend traditional education frameworks, promoting a philosophy grounded in freedom, intrinsic motivation, and experiential learning.

The connection between Sylvia and her lender was facilitated by Debifi’s team, which prioritizes alignment in values and objectives between borrowers and lenders. This synergy was critical in the formation of a successful partnership.

Sylvia’s Comment:

“Max and his team went above and beyond in assisting us with our BTC-backed loan process. Their patience, professionalism, and support were truly outstanding. With their help, we navigated through simulations involving all stakeholders, providing clarity and confidence about what to anticipate and how the process operates. They promptly and thoroughly addressed all of our inquiries, making the entire experience seamless. Thanks to Debifi, our dream is becoming a reality! We are immensely grateful to Max and the entire team for their exceptional service.”

Lender’s Comment:

“We are happy to provide liquidity to A Place To Be to build their unschooling center. Bitcoin ethos has always been built through a community of enthusiasts and this project embodies that mentality.”

This successful pairing underscores Debifi’s broader mission: to not only provide a secure, efficient lending platform but also to foster community and support endeavors that align with the ethos of Bitcoin — maintaining autonomy, promoting innovation, and enabling impactful projects without the need for traditional finance infrastructure.

Results

Debifi’s approach not only facilitated Sylvia’s project but also demonstrated the platform’s broader applicability and potential to reshape the lending landscape. By leveraging Bitcoin’s strengths and bridging to traditional financial institutions, Debifi offers a resilient, inclusive, and innovative lending solution.

Conclusion

Debifi’s pioneering use of Bitcoin as collateral represents a significant leap forward in the lending industry, providing a blueprint for future decentralized financial services. The success of A Place to Be project in Madeira exemplifies the platform’s ability to empower individuals and initiatives that defy traditional boundaries, promising a more accessible and equitable financial future.

This case study not only highlights Debifi’s technological innovation but also its real-world impact, particularly in supporting projects like Sylvia’s unschooling sanctuary. By aligning with Bitcoin’s core principles, Debifi stands as a testament to the potential of decentralized finance to offer more democratic, transparent, and user-friendly lending options. Ensuring that part of the keys remains with the users, Debifi upholds the principle of non-custodial, decentralized finance, crucial for the integrity and independence of both lenders and borrowers.

Reach us:
Debifi Lending: www.debifi.com
E-mail: support@debifi.com

As the leading platform in non-custodial, Bitcoin-backed lending, we’re here to guide you through every step of the borrowing process. Whether you’re new to Debifi or looking to deepen your understanding of our services, this guide will provide you with all the information you need to securely and efficiently use our platform.

How Debifi Works: From Escrow Creation to Loan Repayment

Escrow Creation

Taking out a loan with Debifi means your Bitcoin collateral is securely held in a ¾ multisig escrow, ensuring it remains dedicated solely to securing your loan. This approach provides a transparent and safe lending experience.

Loan Origination and Repayment

The Debifi App is at the heart of our secure loan origination process, facilitating a seamless signing process. When it’s time to repay your loan, the process is direct and transparent, with your Bitcoin collateral returned upon successful repayment.

How to Get Started with Debifi: Your 6-Step Guide to Borrowing

This step-by-step guide will walk you through the process of setting up your account and initiating your first loan, ensuring a smooth and secure experience.

Step 1: Download the App & Create Your Account

The first step to unlocking the power of Debifi is to download our app from debifi.com/app, currently only available for Android users. After installation, create an account using your email. This is crucial for establishing a secure foundation for your transactions on Debifi.

Key Point: Secure your account by setting up a strong PIN code and enabling Two-Factor Authentication (2FA), adding an extra layer of security to your account.

Step 2: Secure Your Account & Back Up Your Seed Phrase

Security is our top priority. Following your account creation, you’ll be prompted to secure your account with a PIN code and set up 2FA. Next, back up your 12-word seed phrase by writing it down on paper and storing it securely. This phrase is vital for account recovery and maintaining control over your funds.

Step 3: Link Your Device & Prepare for Web Interaction

With your account secured, the next step involves linking your device to your account with the 2FA code. This ensures a secure connection between the Debifi mobile app and our web platform, facilitating a seamless interaction with loan offers and account management.

Step 4: Navigate to Our Website & Explore Loan Offers

Once your device is linked, visit https://debifi.com/ to explore available loan offers. Our platform connects you with institutional-grade liquidity, offering a range of options to suit your needs.

Step 5: Initiate the Loan Process

After selecting a loan offer that meets your requirements, use the Debifi app to initiate the loan process. This involves signing the loan contract securely through the app, providing your public keys, and establishing a multisig escrow for your Bitcoin collateral, enhancing the security of your transaction.

Step 6: Deposit Collateral & Receive Your Funds

The final step is to deposit your Bitcoin collateral into the designated multisig escrow system. This action finalizes the loan transaction, ensuring your collateral is securely locked away. Upon confirmation of your deposit, the lender will disburse the loan amount to your specified address, completing the transaction and granting you access to the funds you need.

Debifi stands on the principles of security, transparency, and innovation. We are here to provide a unique lending experience. Navigate your financial path with confidence and insight.

Explore what Debifi has to offer. Download the Debifi app and look into our loan options, you’re not just taking steps towards financial flexibility; you’re also joining a community that values the principle of Bitcoin in shaping a more empowered future.

It’s about more than just loans; it’s about being part of a movement that prioritizes control over your assets and smart financial planning. At Debifi, we’re excited to support you as you explore the possibilities of Bitcoin-backed lending.

Today, Debifi proudly announces the launch of its lending platform, designed to redefine financial independence through Bitcoin-backed loans. Committed to the principle of “Own your money,” Debifi introduces a secure and transparent lending model that allows Bitcoin holders to leverage their assets as collateral without the need to sell.

Debifi is founded on the belief that Bitcoin is more than an asset; it’s a foundational pillar for achieving financial freedom. The platform’s core philosophy, “Never sell. Borrow,” empowers users to retain their Bitcoin while accessing the liquidity they need. Debifi’s non-custodial approach ensures that users remain in control of their money, emphasizing the platform’s dedication to security and transparency.

Debifi’s CEO, Max Kei, expressed his enthusiasm for the launch, stating, “We are happy to finally launch Debifi. Since we announced the company at the end of 2022, our team has been working hard to develop a proper non-custodial lending experience for the market. We want to bring this to a global market, ensuring that every person in every part of the world can borrow without selling a single sat.”

Debifi’s mission extends beyond providing loans; it’s about accelerating the journey to financial freedom through innovative lending solutions. The platform aims to connect borrowers globally with the financial resources they need while introducing traditional financial institutions to the potential of Bitcoin as collateral.

Timechain’s Alexander Mann added, “Debifi is pioneering the use of Bitcoin as foundational collateral for a new global economy. A new economy underpinned by Bitcoin that will consequently be free from the perverse incentives and distorted outcomes of the old one. At Timechain, we are delighted to be leading their latest funding round and will endeavor to support the company in their quest to build critical Bitcoin infrastructure.”

Debifi’s foundation is deeply rooted in the Bitcoin ethos, emphasizing low-time preference, transparency, and supreme security standards. We are dedicated to fostering prosperity for all, offering financial tools that enable global economic empowerment. Our commitment to innovation drives us to continually explore the frontiers of permissionless finance, redefining the possibilities within the sector.

Sylvia Brinded-Püls, Founder of A Place To Be, shared her experience as a Debifi user, “Max and his team went above and beyond in assisting us with our BTC-backed loan process. Their patience, professionalism, and support were truly outstanding. With their help, we navigated through simulations involving all stakeholders, providing clarity and confidence about what to anticipate and how the process operates. They promptly and thoroughly addressed all of our inquiries, making the entire experience seamless. Thanks to Debifi, our dream is becoming a reality! We are immensely grateful to Max and the entire team for their exceptional service.”

As Debifi embarks on its mission to redefine the lending market landscape, the platform warmly invites users and enthusiasts to discover the myriad of opportunities it presents. Currently, in Open Beta, we are diligently working to enhance your experience by continuously adding more features. This phase will allow us to refine our offerings, ensuring that Debifi meets the evolving needs of our community. To enjoy our platform and to stay updated on our progress, visit https://debifi.com

We are proud to announce Timechain is joining Debifi as an investor in our pre-seed round closing. Timechain has contributed to Debifi’s first investment round along with Ten31 and angel investors.

Timechain is the first Bitcoin-only VC outside of the United States. They firmly believe that a prosperous future for humanity cannot occur without sound money as a foundation and a depoliticised method of global value exchange. The path dependant nature of Bitcoin means it can never be replicated by other ‘crypto’ projects, and as such, Timechain exists to redress the widening funding gap between BTC infrastructure projects and ‘crypto’ at large.

Timechain provides the capital, network, and experience to best-in-class Bitcoin companies looking to scale aggressively.

Debifi is a non-custodial Bitcoin-backed lending platform that provides institutional-grade liquidity. Debifi’s unique model will define the future of the Bitcoin lending industry. In light of recent events, the cascade of failures among centralised market runners and lending platforms, we expect users to become more aware of how they handle their funds. By being a non-custodial platform, we will support our users in possession of their funds, only providing the technical tools to ensure the deal’s fairness.

Our mission is to sustain fair industry development, introducing ethical non-custodial lending solutions that won’t use its users’ funds to generate yield and to grant its customers calmness by not being able to access their funds at all. Using Bitcoins’ multisignature addresses for collateral storage with distributed ownership rights (signatures) will allow for better security, transparency, flexibility, and ease of use. No rehypothecation practices will be used due to the technical limitations of collateral storage.

Debifi CEO and founder, Max Kei:
“Our experience in building non-custodial P2P Bitcoin marketplaces has allowed us to discover the strength within the technology we have been using for many years, in fact, we already run 2 powerful platforms that use Bitcoin multisig and offer P2P interactions.

Bitcoin lending space in 2022 has suffered from several major issues — Luna crash, fear, bear market, manipulations, and more. All of this led to significant losses, bankruptcies, and a complete reshaping of the lending market. In fact, most users lost faith in Bitcoin-based lending products, and the market is at the historical bottom in terms of volumes and public confidence.

Debifi, launched in Q1 2023, will address most of the current lending market issues by offering P2P interaction to its users, leveraging non-custodial escrows, and bringing Bitcoin multisig to the institutional liquidity providers.

Momentum is building, and next year will be the perfect time to develop and introduce Bitcoin-only non-custodial tools that will tackle all modern crypto lending challenges — trusted third parties, zero transparency, rehypothecation, bad security, and many more.”

Alexander Mann, Partner at Timechain:
“Max is a proven entrepreneur, having successfuly scaled a similar bitcoin-only business in HODL HODL but targeted at a retail audience. Debifi is decentralised finance done properly, on the bitcoin standard. The continuing scandals in the broader crypto space show the need for a non-custodial lending solution, and Max and the team at Debifi are perfectly placed to be the world leading solution for it.”

The proceeds from the round will allow us to expand current development resources. We are actively hiring and looking to attract enthusiastic employees to our technical team.

Reach us

• Debifi: debifi.com
• E-mail: info@debifi.com
• Twitter: twitter.com/debificom