Bitcoin advocate and financial educator Preston Pysh has partnered with Debifi , a non-custodial Bitcoin-backed lending platform, to advance overcollateralized lending and reduce systemic risk.

Debifi, which allows users to borrow against Bitcoin without rehypothecation, aims to position BTC as the ultimate collateral asset. In simpler words, Debifi will allow users to borrow long-term loans in stablecoins and fiat using their Bitcoin as collateral.

Pysh, co-founder of The Investor’s Podcast Network, will provide strategic guidance on risk mitigation and financial education.

Pysh is a proponent of overcollateralization, warning that anything less than a 1:1 collateral ratio introduces risk into the system.

"The moment a bitcoin lender goes >1:1 collateralization ratio, they’re introducing systemic risk into the system. Overcollateralization ensures lenders are never exposed to losses, creating a trustless environment," he said.

He also criticized rehypothecation, where lenders reuse collateral for other loans, as a violation of Bitcoin’s principles.

"Peer-to-peer lending with overcollateralization and no commingling of collateral is the lowest-risk way to conduct borrowing," Pysh added.

Debifi CEO Max Kei welcomed Pysh’s expertise, noting their shared mission to make Bitcoin the dominant collateral in global finance.

“We’re excited to have Preston Pysh as an advisor. His expertise in systemic risk mitigation and innovative financial models aligns perfectly with Debifi’s mission."

Debifi has seen explosive growth, with loan applications doubling this quarter after launching fiat loans. With Pysh’s involvement, the company plans to expand its lending products and boost institutional adoption.