Introduction to Liquidium: A Peer-to-Peer Lending Platform on the Bitcoin Network

Liquidium is a pioneering project in the native lending space on the Bitcoin network, opening up new opportunities for users to borrow and lend directly on the Bitcoin platform. With the rapid development of the DeFi (Decentralized Finance) ecosystem on Bitcoin and the significant successes the project has achieved since its launch, Liquidium is becoming one of the most notable projects in the Bitcoin economy in the near future.

Products and Operating Model of Liquidium

Liquidium operates based on a peer-to-peer (P2P) lending model, allowing users to borrow and lend BTC directly with each other without the need for intermediaries. Notably, Liquidium allows the use of on-chain assets on the Bitcoin network as collateral, including Ordinals and BRC-20 tokens. This expands access to capital for users with assets on the Bitcoin blockchain that have yet to be fully utilized.

The operating model of Liquidium relies on two key technologies: Partially Signed Bitcoin Transactions (PSBT) and Discreet Log Contracts (DLC). Both technologies work directly on the layer 1 of the Bitcoin network, making transactions secure, transparent, and efficient.

Core Technologies of Liquidium

 1. Partially Signed Bitcoin Transactions (PSBT):

 - This feature on the Bitcoin network allows the creation of multisig transactions. Each party involved in the transaction signs a part of the transaction, resulting in a PSBT. When all parties complete their signatures, the PSBTs are combined to form a complete transaction. This technology provides higher security and better control for users in Bitcoin transactions.

 2. Discreet Log Contracts (DLC):

 - DLC is a mechanism that allows a Bitcoin transaction to be triggered when certain conditions are met. Liquidium uses DLC to trigger the maturity event of a loan based on the Bitcoin block conditions. This makes transactions automatic and transparent, while reducing risk for both borrowers and lenders.

Features of Liquidium: Borrow, Lend, and Portfolio

Liquidium provides three main features to help users participate in the peer-to-peer lending platform on the Bitcoin network: Lend, Borrow, and Portfolio.

 1. Borrow – Borrow BTC Using Bitcoin NFT as Collateral

 - The Borrow feature allows borrowers to use Bitcoin NFTs as collateral to borrow BTC. However, not all NFT collections are accepted, so borrowers need to check whether their assets are eligible for borrowing.

Each Bitcoin NFT collection will display clear loan terms, including:

 - Offer: Loan amount.

 - Interest: Loan interest rate.

 - Term: Loan duration.

 - Loan to Value (LTV): Maximum percentage that can be borrowed.

 - Floor: Minimum price.

If the borrower does not repay the loan in time, the loan will be liquidated, and the collateral will belong to the lender. Also, the borrower needs to wait for the lender to approve the loan request, with a minimum waiting time of 8 hours. During this period, the borrower can cancel the loan request. Note that the borrower needs to prepare a small amount of SAT tokens to pay for the transaction fees.

2. Lend – Become a Lender and Earn Profits

 - The Lend feature allows BTC holders to become lenders. Lenders deposit BTC tokens into lending pools and earn profits through the APY rate, which can range from 100% to 300%, depending on the collection.

When a borrower submits a loan request, the lender will receive a notification via email or Telegram and must approve the borrower’s request for the loan to be processed. The important parameters in the lending pool include:

 - Loan Amount: Amount of money lent.

 - Interest: Interest received.

 - Liquidium Fee: Platform fee (about 20%).

 - Duration: Loan term.

 - Loan to Value (LTV): Percentage the borrower can borrow.

 - Number of Offers: Number of loan requests from borrowers.

Lenders can customize the Loan Amount and Loan to Value to suit their investment goals.

 3. Portfolio – Track Account Status

 - The Portfolio feature helps users easily monitor the overall status of their account. The Portfolio consists of three main sections:

 - Offers: Loan requests from borrowers.

 - Lending: Loans made by the lender.

 - Borrowing: Loans requested by the borrower.

Depending on the user's purpose, they can monitor one of these sections to manage their assets and transactions more effectively.

How to Participate in Liquidium Airdrop: Earn Points to Receive Rewards from Liquidium

Liquidium offers users the chance to earn an airdrop in the future through its point system. These points will serve as proof for participants to receive the airdrop when Liquidium rolls out the program. Here's how points are calculated and the steps to participate in the airdrop program:

How Points Are Calculated

 - Lender (Lender): You will receive 100% of the points when the loan is successfully made.

 - Borrower (Borrower): You will receive 10% of the points when the loan is initiated and the remaining 90% after fully repaying the loan.

Steps to Participate in Liquidium Airdrop

 1. Visit the Liquidium app via the provided link.

 2. Connect your cryptocurrency wallet to the platform. Liquidium supports wallets like Magic Eden and Xverse.

 3. Choose either the Borrow (Borrow) or Lend (Lend) feature based on your needs.

 4. Select a Bitcoin NFT collection and start the loan or lending process.

 5. Check the number of points you have earned based on your role.