A lot of people didn't read the replies to this with the "fine print." But there will be a small annual capital fee of 4% on the highest amount borrowed. And the 3% only applies to small loans. Larger loans will be 5%. This post was to poke fun at Lava, which is marketing loans at 5% with an additional 2% extra capital fee, which can work out to be more expensive than normal loans - but somehow everyone only sees the 5% and then get excited. In my post I just dropped the 5% to 3% and put the missing 2% on the capital fee. 😆 I'm not an expert on lending, but I believe it will be very difficult (if not impossible) to provide loans at scale for 5% interest (or even at 7% with their 2% capital fee). This is simply because there is a market for lending out USD, which yields somewhere between 7% to 9% pretty consistently. Companies can offer lower rates, but it's likely a promotional thing to get users/traction, or limited to only small loans (to get users). Or, the worst case, they are doing something risky to get those lower rates. So if the going market rate for lending out USD is 7-9%, what you have to ask is, why would anyone lend you USD for anything less than that? Then you have to factor in that the platform doing the lending has to make some money as well, so there will be a % added somewhere for that. That's why most of the lending platforms are lending at 9-12% (or more). TL;DR: As someone that wants to borrow against their Bitcoin, it's hard for you to get low rates because there is a market rate. Whoever is lending you the USD won't do so at 7% if they can get 9% elsewhere easily.