Lava Raises $200M for Bitcoin-Backed Line of Credit, Announces New Borrow Rates Starting at 5%
Lava secured $200M and launched a Bitcoin Line of Credit with new borrow rates starting at 5%.Summary
Lava, a platform for bitcoin-backed loans, announced a $200 million funding round, which includes venture and debt capital, and the launch of its new Bitcoin Line of Credit (BLOC). This product functions like a revolving account, similar to a home equity line of credit, allowing users to borrow flexibly against bitcoin collateral without mandatory monthly payments or term limits. The financing brought on new high-profile angels, including Anthony Pompliano and Eric Jackson. As a result, Lava is offering competitive fixed interest rates starting at 5% for one-year durations, with the rate updating annually. The total cost is slightly higher due to a 2% capital charge on the largest outstanding balance during the year, bringing the effective rate near 7%. Loans can be up to 50% of the deposited bitcoin value within Lava's self-custody wallet, and the service offers liquidation protection.
(Source：Bitcoin Magazine)