Funding
Funding not disclosed
Founders
Product
Problem
Individuals and businesses holding Bitcoin often need liquidity for various purposes but wish to avoid selling their digital assets, which can trigger tax liabilities or forgo potential future appreciation. Traditional lending against crypto assets can be complex, opaque, and involve significant counterparty risk.
Solution
Hedge provides a platform that aggregates Bitcoin lending providers, enabling users to borrow fiat or stablecoins against their Bitcoin collateral without selling. The service facilitates access to liquidity by connecting users with various lending protocols, allowing them to compare terms and select the most suitable loan options. This approach offers a way to unlock the value of Bitcoin holdings while maintaining long-term exposure to the asset.
Target Audience
The primary audience includes Bitcoin holders, both individual investors and businesses, who require access to liquidity without liquidating their cryptocurrency holdings.
Features
- Aggregation of multiple Bitcoin lending protocols and providers.
- Comparison interface for loan terms including LTV, APR, and fees.
- Integrated Bitcoin loan calculator to estimate borrowing costs and collateral requirements.
- Support for various loan-to-value (LTV) ratios, with options for conservative LTVs (e.g., 20-35%) to mitigate liquidation risk.
- Facilitation of loans against Bitcoin collateral, allowing users to retain asset ownership and potential upside.
- Access to liquidity for diverse use cases including real estate investment, debt consolidation, business expansion, and personal expenses.
- Emphasis on transparent custody models, including client-controlled multisig vaults and non-rehypothecation policies.
- Tools and information to help users manage risk, including understanding margin calls and liquidation mechanics.