2025-12-22 21:20:20

This issue is indeed common. Many Bitcoin holders have faced such a dilemma: wanting to buy a house, buy a car, or engage in other investment projects, but are reluctant to sell their BTC, which may appreciate in value. How can this contradiction be resolved?

Emerging on-chain lending protocols provide the answer. The core logic is simple: deposit your BTC as collateral in the protocol and obtain liquidity without selling it. This way, you can retain exposure to Bitcoin's rise while having cash to complete your tasks.

For Bitcoin believers, these kinds of solutions are almost tailor-made. Dormant assets come to life through collateral, and this is the magic of DeFi.

BTC0,05%

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

10 Likes

Reward
10
9
Repost
Share

Comment

0/400

SchrodingersPaper

· 2025-12-25 19:17

Basically, it's just a game of playing both sides. Borrow stablecoins by collateralizing BTC—sounds great, but you'll be doomed once you hit the liquidation line.

View OriginalReply0

HodlVeteran

· 2025-12-23 16:50

Hi, isn't this what I thought of back in the day? It's a pity that there wasn't this thing back then... Rekt, bro I'm waiting for BTC to double again, only then will the borrowed money feel comfortable, otherwise, it can't keep up with Interest Sounds nice, but one still has to guard against liquidation risks. I've seen too many all in guys die here On-chain lending is simply swapping assets for time, not everyone can play it well... As I get older, I still feel that holding onto BTC is the most reliable. Borrowing money can easily become an addiction Really, DeFi magic? I call it a risk amplifier, it all depends on how you use it If this trick comes during a bear market, I guarantee someone will be liquidated to tears, trust me.

View OriginalReply0

SleepyArbCat

· 2025-12-22 23:14

Wake up... mortgaging BTC to borrow money sounds nice, but the gas fees will bankrupt you, really.

View OriginalReply0

Ser_Liquidated

· 2025-12-22 21:50

It's easy to say nice things, but those who have truly tried know how terrifying the liquidation risk can be...

View OriginalReply0

FarmToRiches

· 2025-12-22 21:50

Isn't this just a trap to make money without any investment? Lending it out still requires paying interest, is it really worth it?

View OriginalReply0

ForkLibertarian

· 2025-12-22 21:49

I completely agree, this lending protocol indeed addresses the pain points of hodlers. However, one must be cautious with leveraged lending; the liquidation risk is no joke. This is what Decentralized Finance should be doing, making assets truly liquid.

View OriginalReply0

SpeakWithHatOn

· 2025-12-22 21:39

This move is pretty good, finally someone has thought of the correct way to approach Decentralized Finance.

View OriginalReply0

OnchainArchaeologist

· 2025-12-22 21:30

Sounds good, but the liquidation risk is really unavoidable. You are finished the moment BTC has a big dump.

View OriginalReply0

ZkSnarker

· 2025-12-22 21:24

well technically this is just secured lending with extra steps, but yeah the appeal is obvious—hodl through the bull run while still having fiat for life stuff. the thing about on-chain lending tho is liquidation risk gets real when volatility spikes, and suddenly your "collateral strategy" becomes a margin call waiting to happen. fun fact: most people don't account for the borrow costs either

Reply0