Lending and yield model
Supporting the “Yield + Hedge” Investment Thesis
Greengage’s model is built around a simple but powerful principle: generate attractive, risk-adjusted yield while maintaining a natural hedge through Bitcoin exposure. This underpins our Bitcoin Treasury 2.0 strategy, positioning digital assets not only as a store of value but as a productive component of a diversified portfolio.
How Yield Is Generated
Our active Bitcoin Treasury 2.0 approach delivers yield through two complementary channels:
•Non-recourse lending backed by digital asset collateral
•Private credit portfolios sourced through our lending marketplace and partner network
These instruments provide stable, predictable yield streams while allowing the underlying Bitcoin to remain part of a long-term appreciation thesis.
How Non-Recourse Lending Works
Non-recourse lending enables borrowers to secure financing using digital assets as collateral, without exposing other assets to recovery claims. For investors, this creates:
• Defined downside risk
• Transparent collateralisation levels
• Clear liquidation pathways in the event of borrower default
Collateral remains under custody with strict controls, ensuring high visibility and enforceability throughout the loan cycle.
Risk Management Controls
Our risk framework is designed to protect investor capital and adapt to changing market conditions. It includes:
• Prudent loan-to-value (LTV) ratios
• Continuous collateral monitoring and automated alerts
• High-quality borrower screening and underwriting
• Stress-tested risk thresholds aligned with market volatility
• Independent oversight and structured governance
This multi-layered approach ensures resilience across market cycles.
Margin Profile
The model is built to deliver strong net margins through a combination of:
• Attractive gross yields from private credit and collateralised lending
• Efficient capital deployment via curated loan books
• Low operational drag enabled by technology-first infrastructure
Our goal is to maintain a consistent margin profile while scaling volume and diversifying collateral types.
Scenarios & Downside Protection
A key advantage of the Bitcoin Treasury 2.0 structure is its built-in downside protection. Scenario modelling shows:
• Buffer zones before collateral approaches liquidation thresholds
• Protection via over-collateralisation and conservative LTVs
• Reduced portfolio volatility due to blend of Bitcoin exposure and fixed-yield credit
• Hedged outcomes where Bitcoin appreciation offsets market softness in the credit book
This creates a balanced, scenario-resilient investment model.
Our Case Studies - coming soon
We will publish a series of case studies as the portfolio matures, demonstrating how our lending and yield strategies perform across different market conditions.
