The Lava Loans protocol (v2) is a scheme designed by Lava building upon Discreet Log Contracts (DLCs) to facilitate a trustless Bitcoin collateralized loan system. The huge implosion in the market last cycle caused by centralized platforms facilitating Bitcoin backed loans showed that left unchecked, such products and services can present a massive systemic risk to the entire market in the ecosystem.

Lava seeks to provide the same utility users of such centralized platforms sought in a decentralized and atomic fashion, using DLCs.

DLCs, for those unfamiliar with the concept, are a smart contract designed to settle a certain way depending on the outcome of some event outside of the…

Read more on BitcoinMagazine