Celsius and BlockFi burned the book, but new players are quietly rewriting it — with more caution, less hype, and scars that still sting.
❌ No more black boxes?
🟡 Lenders now avoid the “rehypothecation roulette” that tanked billions — promising overcollateralization, public reserves, and lower LTVs
🟡 Retail is mostly gone — loans are now used for #liquidity , tax deferral, or balance sheet play by corporates and long-term holders
🟡 Platforms like Strike say never again to reusing your $BTC , while others offer full disclosure or third-party custody
💬 “Rehypothecation still worries users — some are doing it better, but it’s the same 2021 story if transparency is missing,” says Accountable CEO Wojtek Pawlowski
🔒 Safer ≠ bulletproof
🟡 #BTC still swings 5%+ in a day — even conservative 40-50% LTV can collapse if markets dive
🟡 Collateral pools are mostly single-asset and can still vanish overnight
🟡 Modern lenders promise no yield-farming with user BTC — but one hidden repackaging, and the dominoes fall again
🤔 Who’s borrowing now?
🟡 Total CeFi #bitcoin loan book rebounded to $13.5B in Q1 2025 (up 9% QoQ)
🟡 Institutions and long-term HODLers are borrowing against BTC to access liquidity without triggering capital gains
🟡 But even they remain wary — because smart contracts don’t protect you from a 20% crash
💬 “Lower leverage, public reserves, even banking licenses — all improvements. But don’t pretend this thing’s bulletproof,” warns Savea CEO Sam Mudie
Bitcoin lending isn’t dead. But it's no longer the casino it used to be. And maybe that’s a good thing.
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