What is Liquidium? Liquidium is a P2P Lending platform on Bitcoin that allows users to borrow and lend against Ordinals as collateral. Let’s find out what is special about this project with Weakhand in this article.
Before jumping into the article, you can refer to some projects about NFT Lending to better understand:
- What is NFTfi? Overview of NFTfi cryptocurrency
- What is BendDAO? BendDAO cryptocurrency overview
- What is Arcade? Arcade cryptocurrency overview
- What is sodium? Sodium cryptocurrency overview
What is Liquidium?
Overview of Liquidium
Liquidium is a P2P Lending platform on Bitcoin that allows users to use Ordinals as collateral to borrow a corresponding amount of Bitcoin.
So what is Ordinals?
Ordinals are a new type of digital asset created on the Bitcoin network by attaching data such as images, videos,… to a satoshi – the smallest unit of Bitcoin.
Enabled by the Taproot upgrade of the Bitcoin network, Ordinals are similar to Non-fungible tokens (NFTs) on other blockchains like Ethereum. However, Ordinals offer unique features that set them apart from NFTs:
- Ordinals are recorded directly on the Bitcoin blockchain, eliminating the involvement of intermediaries. Therefore, Ordinals inherits the security and decentralization of the Bitcoin network. This feature also ensures Ordinals are immutable and scarce due to Bitcoin’s limited supply and block size.
- Ordinals are normally sorted based on mint time. This ubiquity creates natural scarcity and rarity, with the lower the index being the more valuable.
- Ordinals can contain many types of data encoded in binary format including: Images, videos, text, audio files, etc. With these unique characteristics, Ordinals is gaining demand across the block chain.
What is Ordinals?
Using Discreet Log Contracts (DLCs) and Partially Signed Bitcoin Transactions (PSBTs) In partnership with DeepLake, Liquidium provides a secure and trust-less platform for accessing liquidity using Bitcoin as the native asset.
Mechanism of action of Liquidium
Liquidium’s operating model works according to the following steps:
Liquidium’s operating model
Step 1: Borrowers lock in their Ordinal by signing a partial PSBT and setting the desired amount, interest rate and term. Borrowers can cancel their loan request at any time before the lender initiates the loan.
Step 2: Anyone can become a lender by offering their BTC to borrowers. To originate a loan, the lender sends the loan amount to the borrower. Each loan can only have one lender on a first-come, first-served basis.
Step 3: The borrower will receive the corresponding amount of BTC. They can repay the loan + interest anytime before maturity to get their Ordinals back.
Sale: If after the maturity date the borrower does not repay the loan, the borrower’s collateral will be liquidated and the liquidated Ordinals will be transferred back to the lender.
What is the Liquidium difference?
- Users can use borrowed Bitcoin to purchase additional Ordinals or other assets on the Bitcoin network without switching between wallets, blockchains, or platforms.
- Users avoid wrapping their orders to another chain, which adds risk and fees. Liquidium uses DLCs to establish trustless contracts between borrowers and lenders that are executed against Oracle.
- Users can take advantage of Bitcoin’s security, scalability, and privacy because Liquidium uses PSBT to create flexible and composable transactions that multiple parties can sign.
Investor
Update…
Core Team
Robin Obermaier: CEO
Leonidas Zouvelos: COO
Peter Giammanco: CTO
Robin Obermaier : Co Founder & CEO
- Robin has worked at Obermaier as Web Developer & IT Lead since October 2020.
- After that, Robin quit his job and joined Apple as a Technical Specialist from November 2021.
- In August 2022, Robin joined Liquidium and is currently Co Founder and CEO of Liquidium.
Peter Giammanco : Co Founder & CTO
- Peter graduated with a bachelor’s degree in computer science from Penn State University.
- Peter worked as a software engineer at PNC starting in August 2020.
- In September 2022, Peter joined Liquidium and is currently Co Founder and CTO at Liquidium.
Leonidas Zouvelos : Co Founder & COO
- Leonidas graduated from BTC Startup Lab in May 2022.
- In March 2022, Leonidas joined Liquidium and is currently Co Founder and COO at Liquidium.
Tokenomics
Update…
Liquidium Project Information Channel
- Website: https://liquidium.fi/
- Twitter: https://twitter.com/LiquidiumFi
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