In 2025, with inflation rising (here's the latest example) and traditional investments like bonds yielding low single digit returns, savvy investors are turning to Bitcoin-backed loans for high returns and low risk.

Firefish, a leading peer-to-peer, non-custodial lending platform, connects fiat lenders with Bitcoin HODLers, offering investors up to 15% annual percentage yield (APY) without the need to touch crypto.

Why are Bitcoin-backed loans on Firefish the smartest investment this year? (At least we think so. Here are five reasons we put forward.

1. Low-risk investments with a 50% LTV

Firefish’s has adopted a 50% loan-to-value (LTV) ratio. This ensures your investment is backed by Bitcoin collateral worth twice the loan amount. For a €10,000 loan, borrowers lock at least €20,000 in Bitcoin in a secure, on-chain multisig escrow.

This overcollateralization protects your funds against Bitcoin’s volatility. With Bitcoin’s growing adoption, your investment stays safe, making Firefish a top choice for high-yield investing.

2. Earn up to 15% APY (No crypto expertise needed)

Firefish delivers high-yield investments with APYs up to 15% on 3-18 month loans, outpacing traditional options like savings accounts or treasuries.

As a lender,

• you provide fiat (currently, the platform supports currencies including EUR, CZK and CHF), or stablecoin (USDC)

• verify repayments, and

• collect interest

At no stage, does Firefish require you to manage Bitcoin wallets or understand crypto. Besides, our non-custodial model ensures no risks to the collateral arising from rehypothecation.

Fun fact: Firefish charges no fees to lenders, ensuring you keep more of your returns.

3. Zero default risk with liquidation protection

Concerned about borrower defaults? Firefish eliminates this risk.

If a borrower is unable to repay the lent amount, their Bitcoin collateral — always valued higher than the loan — is liquidated.

There are two scenarios for liquidation:

• Borrower doesn’t repay their loan at maturity - the collateral is transferred to the liquidator (either Investor or Firefish), who then sells a portion of the collateral to settle the outstanding loan amount. The remaining Bitcoin is returned to the Borrower, with the liquidator retaining a 5% liquidation fee.

• Bitcoin price reaches liquidation price - in the event of a significant decline in the Bitcoin price that reaches the liquidation threshold, and if the Borrower neither adds more collateral nor repays the loan, their collateral is transferred to the liquidator. In this scenario, the liquidator retains the entire collateral amount.

This guarantees your principal and interest are recovered, offering peace of mind. Learn more about Firefish’s security for details.

Good to know: The code and logic of the Firefish protocol have undergone a thorough review by the specialized audit company Ackee Blockchain, as well as by a number of Bitcoin experts and developers.

4. Volatility-proof investing with CHI monitoring

We have built Firefish to ensure peace of mind, both for the borrower and lender.

Bitcoin’s price swings are no threat thanks to Firefish’s Collateral Health Index (CHI), which monitors collateral value 24/7. If Bitcoin’s value drops, the CHI triggers margin call alerts, prompting borrowers to add collateral or repay early. At 95% LTV, automated liquidation protects your investment.

This proactive system lets you earn high yields without worrying about market dips.

5. Flexibility in investing

Firefish offers unmatched flexibility, letting you tailor your Bitcoin-backed loans to your financial goals.

Invest directly from your bank account making high-yield investing accessible to all. With loan terms from 3 to 18 months, you can choose short-term gains or longer-term stability, aligning with your strategy.

Whether you’re diversifying a portfolio or seeking passive income, Firefish’s €500 to €150,000 loan range suits any investor.

Learn more here

In conclusion

As traditional investments falter, Firefish offers a unique blend of high returns, low risk, and simplicity. You don’t need to be a Bitcoin or crypto expert — just a smart investor ready to beat the market. With Bitcoin’s increasing mainstream adoption and Firefish’s robust platform, Bitcoin-backed loans are a future-proof investment for the coming years.

Ready to earn up to 15% APY? Join the future of high-yield investing today!