In a live demo at the Adopting Bitcoin event in San Salvador, Kevin Bell (SPEAKER A) walks through Cadena’s peer‑to‑peer Bitcoin borrowing and lending platform. He explains that the product is a fully self‑custody system with no KYC and no liquidations. Using a 1 BTC loan example, he details the lender’s and borrower’s economics, the 50 % loan‑to‑value (LTV) structure, interest pre‑payment, and how the collateral pool is split at settlement based on Bitcoin’s price. He then shows the on‑chain funding transaction, describing UTXO inputs from both parties, change outputs, network fees, and Cadena’s fee. The demo highlights the open‑source Signer app that generates or imports a 12‑word seed, signs transactions without ever exposing the seed, and enables self‑custody. Finally, Bell positions the product as a DeFi tool for Bitcoin holders to earn fiat‑yield or gain leveraged exposure, referencing Michael Saylor as an example user.
Chapters
Hey guys, come on, check out the Cadena Bitcoin booth here at Adopting Bitcoin in San Salvador. So I just wanted you guys to come in and I'll do a brief example of what a transaction looks like on our Bitcoin borrowing and lending platform. Again, the key differentiation, no, it's a full self-custody platform with no KYC and no liquidations. This is new technology and very different from what exists in the field. And so I'm going to just walk through an example of a 1 Bitcoin loan. We have 0.1 Bitcoin loans and 0.01 Bitcoin loans, but I'm just going to quickly go through an example. So the lender in our market is somebody who's looking for a fixed fiat yield. The borrower in our market is somebody who's looking for a leveraged Bitcoin exposure. And those are two sides of the same coin, and it's a peer-to-peer exchange. They're trading with each other. So for the lender, easiest to understand from their perspective, they're putting in the discounted value of a 50% loan-to-value product today, which in English means they're going to put in, say they want a 10% interest rate over a year, 1 divided by 1.1 times 50% loan-to-value, they're putting in 0.454545 Bitcoin into a collateral pool. I'll show you what that looks like in a second. Today, assuming Bitcoin's price is $100,000. That works out to $45,454. At the end of the contract, they're going to receive $50,000 worth of Bitforte. Conversely, the borrower is prepaying the interest upfront, so they're putting in 0.5454 Bitcoin and they own the economics of this 1 Bitcoin collateral pool. Their payout is going to be different. So imagine Bitcoin's price goes up to $150,000. They're going to receive $100,000 of that collateral pool on the final settlement. The lender still receiving their $50,000. Bitcoin's price stays at $100,000 over that year, the lender is going to still receive their $50,000 worth of Bitcoin. The borrower is going to receive $50,000 worth of Bitcoin also. In the event Bitcoin's price falls to $50,000, the lender will receive all the collateral, and so the borrower will receive nothing in this case. I'm going to get Noah to zoom in and show you how this looks on the blockchain. So This is the funding transaction. We're taking UTXOs from the borrower, UTXOs from the lender, providing change to the borrower and lender, Bitcoin network fee, Cadena's fee. And then we have this collateral pool traveling through time and space. We come to the final settlement. Bitcoin's price at the end will determine how that collateral pool is split. And so there's a payout to the borrower and the lender and the Bitcoin network transaction fee, and we keep half of our fee. To, in the contract also. The key part of this and how we maintain self-custody is the magic of the Signer app, which is available in the App Store today. It's not available in Google Play at this day, but you can download it directly from the app and we're gonna add distribution for Google. And so the key thing here, the app, you can generate a 12-word seed phrase, you can use entropy. We can generate a 12-word seed phrase. You can use Entropy to generate your own 12-word seed phrase, or you can connect any existing 12-word seed phrase to Kadena. What happens when you use the signing app, which is open source, so people can check this, is we're getting the signature information. We know that you can sign the transaction. We don't have your 12-word key seed phrase. And welcome to decentralized finance. So now As a Bitcoiner on the Bitcoin Standard, you can hold Bitcoin, you can generate fiat return greatly in excess of what you would get from a bank account or term deposit, or you can leverage your Bitcoin exposure like Michael Saylor. All kinds of ways to use this product in decentralized finance, and we're looking forward to doing that.
