What Is Liquidium?
Liquidium is a peer-to-peer Bitcoin lending platform that leverages Bitcoin-based assets such as Ordinal Inscriptions (Ordinals) and Runes as collateral. Users can borrow or lend Bitcoin, facilitated securely through Partially Signed Bitcoin Transactions (PSBTs) and Discreet Log Contracts (DLCs) on the Layer-1 Bitcoin network. This approach ensures a non-custodial and decentralized way of managing loans.
What Is Liquidium?
Liquidium is a peer-to-peer Bitcoin lending platform that leverages Bitcoin-based assets such as Ordinal Inscriptions (Ordinals) and Runes as collateral. Users can borrow or lend Bitcoin, facilitated securely through Partially Signed Bitcoin Transactions (PSBTs) and Discreet Log Contracts (DLCs) on the Layer-1 Bitcoin network. This approach ensures a non-custodial and decentralized way of managing loans.
How Does Liquidium Work?
Liquidium operates by allowing users to borrow Bitcoin against their Bitcoin assets without needing to sell them. Conversely, lenders can offer their Bitcoin to borrowers and earn a yield. Each loan involves one lender and one borrower, with terms pre-agreed upon by both parties. Loans have a set expiration date, and if the borrower repays on time, the collateral is returned, and the lender receives the repaid Bitcoin plus yield. If the borrower defaults, the lender retains the collateral.
Where Can You Use Liquidium?
Liquidium's services are available globally, providing an efficient and secure way for Bitcoin holders to leverage their assets without selling them. The platform aims to continuously innovate within the Bitcoin DeFi landscape, maintaining its position as a pioneer in Bitcoin-based decentralized finance.
Unique Features of Liquidium
- P2P Lending: Each loan is a direct agreement between a borrower and a lender, ensuring transparency and direct interaction.
- Non-Custodial: The platform ensures that users retain control over their assets throughout the lending process.
- Secure Transactions: Utilizes PSBTs and DLCs to secure transactions on the Bitcoin network.
- Bitcoin-Based Collateral: Supports unique Bitcoin assets like Ordinals and Runes as collateral.
Liquidium's History
Liquidium was founded in August 2022 by Robin Obermaier, Julian Mezger, and Peter Giammanco. Initially, it started as the first lending protocol on Stacks, a Bitcoin side-chain. With the introduction of Bitcoin Ordinals in January 2023, the team pivoted to building directly on the Bitcoin Layer-1 network. The first version of Liquidium on Bitcoin launched on mainnet in July 2022. Since then, the protocol has facilitated over 2206 BTC (~ $150Mn USD) in total loan volume, executed over 33,000 loans, and paid over 39 BTC (~ $2.6Mn USD) in yield to lenders (as of July 24, 2024).
Liquidium Token
The LIQUIDIUM•TOKEN was launched on July 22nd, 2024, marking the first governance token on the Runes token standard on Bitcoin. This token is designed to decentralize the Liquidium protocol and enhance community involvement in governance, strengthening the overall ecosystem.
The Founding Team
- Robin Obermaier: Background in Design & Management.
- Julian Mezger: Expertise in Marketing & Management.
- Peter Giammanco: Specializes in Computer Science.
The founders graduated from the Bitcoin Startup Lab and the Bitcoin Frontier Fund accelerator, making them the youngest team to do so.
Summary
Liquidium stands out as a leading non-custodial Bitcoin lending protocol, offering secure and efficient P2P lending options. By using Bitcoin-based assets as collateral, Liquidium provides liquidity solutions to Bitcoin holders while enabling lenders to earn a yield on their Bitcoin. With its strong foundation and commitment to decentralization, Liquidium is poised to drive further innovation in the Bitcoin DeFi space.
