Safety factors
8
The current framework spans custody, collateral treatment, transparency, regulation, and liquidation design.
CeFi safety-first starting points
Centralized or collaborative-custody options where legal structure, collateral isolation, and liquidation posture create the strongest CeFi profiles in the tracked dataset.
#1 in CeFi
Unchained
CeFiMulti-SigBest fit: Custody-first borrowers who want to keep control of their keys. Ideal for large loans ($150K+) where multi-sig security matters more than the lowest rate. Best for long-term BTC holders who prioritize self-sovereignty.
Safety decision profile
Relative to the current CeFi shortlist
Safety score
9.0CeFi
Reserve transparency
Published transparency
Published via Self-verifiable on-chain (collaborative multisig — you hold keys)
Collateral treatment
No rehypothecation
Max tracked LTV 50%
Still watch
Safety-first does not mean cheap: the effective APR is high, the minimum loan is high, and the fit narrows quickly if custody control is not your primary constraint.
#2 in CeFi
Xapo Bank
CeFiCustodialBest fit: Borrowers who value one of the strongest regulatory pedigrees in our tracked dataset (full banking license) combined with no rehypothecation and military-grade custody. Ideal for international borrowers who want a conservative, institutionally credible BTC-backed loan with human-managed liquidation protection.
Safety decision profile
Relative to the current CeFi shortlist
Safety score
8.8CeFi
Reserve transparency
No published transparency
No published reserve reporting or on-chain verification
Collateral treatment
No rehypothecation
Max tracked LTV 40%
Still watch
It remains custodial, has no on-chain reserve verification, and the broader bank-membership model can matter before the loan terms do.
#3 in CeFi
Ledn
CeFiCustodialBest fit: Borrowers seeking institutional-grade transparency with large loan amounts ($250K+). Best for those who value Open Book reporting and clear custody metrics, while accepting custodial/funding-partner exposure.
Safety decision profile
Relative to the current CeFi shortlist
Safety score
7.4CeFi
Reserve transparency
Published transparency
Published via The Network Firm LLP / Open Book Report
Collateral treatment
Rehypothecation: partial
Max tracked LTV 50%
Still watch
BitGo still holds the collateral, and the strongest rate tiers are concentrated in larger-loan brackets rather than standard retail sizing.
#4 in CeFi
Figure
CeFiCustodialBest fit: Rate-sensitive borrowers who want a simple sub-10% effective APR on a fixed 12-month product and can accept custodial storage. Good for borrowers who value BBB accreditation and optional liquidation protection.
Safety decision profile
Relative to the current CeFi shortlist
Safety score
7.1CeFi
Reserve transparency
No published transparency
No published reserve reporting or on-chain verification
Collateral treatment
No rehypothecation
Max tracked LTV 50%
Still watch
Custodial/MPC model — borrower does not directly hold the keys during the loan
#5 in CeFi
Arch Lending
CeFiCustodialBest fit: Borrowers who want institutional-grade custody (Anchorage) with no rehypothecation and a flexible line of credit structure. Ideal for repeat borrowers who value draw/repay flexibility.
Safety decision profile
Relative to the current CeFi shortlist
Safety score
7.0CeFi
Reserve transparency
No published transparency
No published reserve reporting or on-chain verification
Collateral treatment
No rehypothecation
Max tracked LTV 60%
Still watch
The structure is cleaner than many peers, but the operating history is shorter and the advertised floor is not the same as the typical all-in borrower experience.
DeFi safety-first starting points
Protocols where non-custodial design, on-chain transparency, and deeper operating history create the strongest DeFi profiles we track.
#1 in DeFi
Aave
DeFiNon-CustodialBest fit: DeFi-native borrowers who want non-custodial lending with the deepest liquidity. Best for those comfortable with smart contract risk and WBTC in exchange for lower rates and no KYC.
Safety decision profile
Relative to the current DeFi shortlist
Safety score
8.3DeFi
Reserve transparency
Published transparency
Published via On-chain (smart contract)
Collateral treatment
No rehypothecation
Max tracked LTV 70%
Still watch
You still inherit WBTC wrapper risk, variable borrowing costs, and no regulatory backstop even though the protocol architecture scores well.
#2 in DeFi
Maker (Sky)
DeFiNon-CustodialBest fit: DeFi borrowers comfortable with WBTC vault management and a governance-set, variable stability fee (currently a ~9–16% band). Best for large WBTC holders who want non-custodial vault mechanics and can monitor governance-driven rate changes.
Safety decision profile
Relative to the current DeFi shortlist
Safety score
8.2DeFi
Reserve transparency
Published transparency
Published via On-chain (smart contract)
Collateral treatment
No rehypothecation
Max tracked LTV 67%
Still watch
The safety profile is strong, but WBTC wrapper risk, governance-set fees, and the harsher liquidation penalty still matter before you treat it as the default answer.