As Bitcoin DeFi matures, new platforms are making it increasingly easy to borrow and lend BTC without having to sacrifice self-custody or rely on centralized intermediaries.
In this guide, we review three standout Bitcoin lending apps, each of which offers something different, from Layer 1-native lending and cross-chain borrowing to yield strategies on Layer 2.
TL;DR
- Bitcoin lending turns BTC into programmable money with secure, non-custodial tools that rival other blockchain ecosystems.
- Some of the top Bitcoin lending apps include Liquidium, Sovryn, and Bitflow Finance.
- These platforms let users borrow stablecoins, earn yield on BTC, and trade Bitcoin-native assets without using wrapped tokens or giving up their private keys.
Liquidium
LiquidiumFi is a decentralized lending protocol that enables cross-chain borrowing and lending across major blockchains like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL), without relying on centralized bridges or wrapped assets.
Built on the Internet Computer network, it lets users deposit native BTC and borrow assets on other chains, all while retaining self-custody.
Key Features of Liquidium
Easy Cross-Chain Lending
Thanks to its Chain Fusion technology, Liquidium enables users to deposit BTC directly on the Bitcoin mainnet and borrow stablecoins (such as USDT or USDC) on Ethereum or Solana. It uses cryptographic proofs for native interaction with other chains.
Non-Custodial Architecture
Liquidium is entirely non-custodial. This means that as a user, your funds never leave your control. All assets are kept in self-managed wallets, with lending and borrowing managed through Internet Computer smart contracts that coordinate across chains via Chain Fusion.
The protocol cannot control your private keys, so only you can move your funds. Security is enforced entirely by code and on-chain verification, meaning no central party can freeze or access your assets in any way.
Sovryn
Sovryn is a decentralized finance (DeFi) protocol built on the RSK Bitcoin sidechain, offering non-custodial lending, borrowing and margin trading via smart contracts using native RBTC.
It avoids wrapped tokens or centralized bridges and enables users to put their BTC to work securely while maintaining full self-custody.
Key Features of Sovryn
Bitcoin-Backed Lending and Borrowing
Sovryn allows users to deposit BTC (as rBTC) and take out overcollateralized loans in stablecoins or other assets. Borrowers can access liquidity without selling their Bitcoin, while lenders earn yield from interest payments all settled on a trust-minimized, peer-to-peer basis.
Margin Trading and Swaps with rBTC
Through Sovryn’s native AMM and limit order book, users can trade Bitcoin-native assets and access up to 5× leverage via margin positions. All trades settle in rBTC, with no need for external tokens or gas currencies.
Non-Custodial, Peer-to-Peer Infrastructure
Sovryn is not a centralized exchange or lending desk. Funds are secured in multi-signature contracts, and users always retain control of their private keys. Loans, trades, and deposits are executed via smart contracts without intermediaries.
Bitflow Finance
Bitflow is a decentralized exchange (DEX) and liquidity platform built on the Stacks Bitcoin Layer 2. Users can trade and lend Bitcoin-native assets without using wrapped tokens or centralized bridges.
Operating natively on Bitcoin Layer 2 infrastructure, Bitflow users can earn yield, trade stablecoins, and access liquidity all while preserving self-custody and minimizing cross-chain risk.
Key Features of Bitflow Finance
Bitcoin-Native Lending and Yield
Bitflow allows users to supply BTC derivatives like sBTC or aBTC and earn real yield directly in the same asset, without the need for token swaps or conversions. By offering single-sided liquidity pools, Bitflow eliminates the need for pairing tokens, making it easier to earn yield on your BTC without giving up control.
Aggregated DEX Routing on Stacks
As a DEX aggregator, Bitflow connects liquidity from multiple protocols on Stacks. Its smart routing engine ensures users get the most efficient swap paths and best available prices for Bitcoin-pegged assets and stablecoins.
Non-Custodial Architecture
Bitflow is a fully non-custodial protocol. All funds remain in users’ wallets or smart contracts, and transactions are executed trustlessly using Stacks’ smart contract layer.
Final Thoughts
Bitcoin lending no longer requires a compromise between decentralization and usability. Platforms like Liquidium, Sovryn, and Bitflow are setting new standards by enabling real yield, cross-chain access, and non-custodial control.
Each of these lending apps reflect a different vision of what Bitcoin DeFi can be. Together, they signal a maturing ecosystem, one where Bitcoin is more than a store of value.
It’s becoming programmable money, with infrastructure that rivals other blockchains, while retaining Bitcoin’s superior foundation of security and sovereignty.
