Platform Comparison
Lava vs Ledn: DeFi vs CeFi BTC Lending
Compare Lava and Ledn for Bitcoin-backed loans. Custody, rate, and counterparty risk — Lava's custody model is unresolved (reportedly custodial as of Nov 2025), Ledn is regulated custodial CeFi.
Lava and Ledn approach BTC lending differently. Lava has one of the lowest published BTC interest rates we track (6.5-7.5%, comparable to Arch from 7.25% and SALT from 7.49%) plus a separate 2% annual capital charge and requires no KYC, but its custody model is unresolved — reporting (Bitcoin Magazine, Nov 2025) indicates a move to custodial cold storage while Lava's site still markets self-custody. Ledn is a regulated CeFi platform with BitGo custody, Open Book reporting, and a $10B+ track record. It's a trade-off between rate and regulatory clarity.
Lava is stronger on headline rate: 6.5% with no KYC. But its custody model is unresolved (reportedly custodial as of Nov 2025, though its site still markets self-custody), and there is no regulatory recourse if something goes wrong.
Ledn is stronger on reporting and regulated infrastructure: recurring reserve reporting, institutional custody, and experience through prior market cycles. The rate is higher, but the risk surface is more familiar to CeFi borrowers.
Head-to-Head Comparison
Key Differences
- Lava has no rehypothecation vs Ledn's partial rehypothecation
- Lava offers a lower starting APR (7.50% vs 9.25%)
- Ledn scores higher on safety (7.4 vs 3.4)
- Lava has no known US-state exclusions, while Ledn excludes 11 US states in our dataset
The Verdict
Which platform is right for you?
→ Pick Lava if:
- • You want one of the lowest published BTC rates we track (6.5-7.5%; Lava custody unresolved)
- • You want non-custodial — you keep your keys
- • You want a permissionless route with no tracked US-state exclusions in our dataset
- • You're comfortable with smart contract risk
- • You want to borrow as little as $100
→ Pick Ledn if:
- • You want regulatory compliance and institutional custody
- • You value Open Book reporting
- • You're borrowing $250K+ for tiered rate discounts
- • You want a longer-running platform (8 years, $10B+)
- • You prefer traditional financial infrastructure
Share this comparison
Ready to compare your specific scenario? Use the comparison tool to input your loan amount, collateral, and preferred terms.