Cadena lets Bitcoin holders borrow fiat against their crypto without a bank. Deposit 0.54 BTC as collateral, sell 0.445 BTC for roughly $45,454, and get that as a loan. Repay by buying back about $50,000 worth of Bitcoin at maturity.
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Because a lot of people are asking about how Cadena can be used as a loan for fiat. And what we talked about before was that the borrower is putting in the interest upfront. So in the example we used, they're paying 0.54 Bitcoin into this collateral pool. And assuming they have 1 Bitcoin, that leaves them 0.445 Bitcoin in their stack that they have access to and can sell. And when they sell that, they're going to receive $45,454 worth of fiat. And that's their loan. They're effectively lending the money to themselves. Themselves, they use this $45,454 knowing that at the end of the loan they need to buy back $50,000 worth of Bitcoin. And so they do that by buying back the Bitcoin and paying back their stack. And with no third parties, you're now hedging your exposure to Bitcoin and loaning yourself the money. If there's other questions on how that works, please reach out.