Lending & Borrowing
a loan-to-value ratio
The proportion of a loan to the collateral's value, expressed as a percentage.
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Lending & Borrowing
collateralized lending
A loan secured by collateral, typically crypto assets like BTC, enabling borrowers to access liquidity without selling the asset.
Collateralized lending is a loan secured by collateral, typically crypto assets like BTC, allowing borrowers to access liquidity without selling their holdings. In practice, it relies on the definition of collateralization—specifically collateral value relative to the loan (LTV) and liquidation thresholds that protect lenders when prices move.
There are multiple approaches to obtain BTC-backed liquidity:
- DeFi, non-custodial: on-chain lending via protocols like Aave v3 or Morpho Blue, where collateral remains under the borrower’s control and loan terms are enforced by smart contracts.
- CeFi, custodial lenders: centralized lenders hold or manage collateral, offering faster onboarding but introducing counterparty risk.
- Aggregation services: platforms such as Sats Terminal Borrow compare offers from DeFi and CeFi lenders to surface best terms for emergency-liquidity needs, while preserving self-custody.
- Traditional options: selling BTC or using off-chain credit facilities.
Across these lending concepts, Sats Terminal presents collateralized lending options from multiple lenders, simplifying discovery without sacrificing custody.
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