Kevin Bell, CFAFounder, Cadena Bitcoin · Founder, Cadena Bitcoin (developing Bitcoin credit markets and helping clients generate fiat yield or leverage Bitcoin exposure with full self-custody)

Dive Deep Into How Cadena Works: DLC's, Loan Size, Term and Interest

8 Oct 2025 · 1 min

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Kadena is a decentralized marketplace for Bitcoin-backed loans using discrete log contracts. Lenders and borrowers lock collateral to create binding agreements with fixed terms: loan size, LTV, and interest rates. Contracts run for 30, 90, 180 days, or one year, with simple interest calculated on a 30/360 day basis.

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How does Kadena work? Let's dive in. Kadena Bitcoin is a decentralized Bitcoin lending and borrowing marketplace where users lock Bitcoin collateral in a discrete log contracts to facilitate loans. Here's a breakdown of the key actions. A user posts an offer on Kadena Bitcoin, locking collateral and specifying interest rate. Terms like loan size, contract tenor, loan-to-value, and currency are fixed at the product level. Peer accepts the offer locking in their collateral and forming a contract. Each Kadena Bitcoin contract lasts 30 days, 90 days, 180 days, or 1 year starting when the contract is accepted. Duration may extend slightly to align with the next available Oracle attestation after maturity. Simple interest using a 30/360-day count convention commonly used in USD debt. No compounding. For tenors shorter than 1 year, the 360-day basis understates the true rate compared to a 365-day base. Kadena Bitcoin makes Bitcoin-backed loans simple and transparent.