Exploring Liquidium: The Future of Decentralized Bitcoin Lending

远山洞见2024/07/25 02:09

By:远山洞见

I. Project introduction

Liquidium is a decentralized financial platform based on the first layer of Bitcoin, focusing on peer-to-peer Bitcoin lending. Users can borrow Bitcoin using Ordinals, Runes, and BRC-20 as collateral, with an annualized rate of return of up to 350%. Each loan is secured through DLC (Discreet Log Contracts), and lenders can obtain collateral if borrowers do not repay the loan. The platform is non-custodial and does not require bridging, and all transactions are natively protected on the Bitcoin blockchain.

II. Project highlights

The highlights of the Liquidium project include:

1. Peer-to-peer bitcoin lending: Users can borrow and lend bitcoin directly without intermediaries.

Multiple collateral support: Supports Ordinals, Runes, and BRC-20 as collateral.

3. High annualized rate of return: The annualized rate of return can reach up to 350%.

4. Security: Use DLC (Discreet Log Contracts) to ensure the security of each loan.

5. Native Bitcoin protection: All transactions are conducted on the Bitcoin blockchain without the need for bridging or escrow.

III. Market value expectations

As of now, the Liquidium platform has issued a total loan amount of 129 million USD, with a total locked-in value (TVL) of 11 million USD and interest payments of 3 million USD. The total number of loans is 31,000. These data reflect the growth potential of the platform in terms of users and funds, as well as the degree of demand from market users for the business.

As a peer-to-peer lending solution, it utilizes the powerful features of Discrete Log Contracts (DLC) and Partial Signed Bitcoin Transactions (PSBT), allowing users to borrow and lend native Bitcoin with native Ordinals as collateral. Combined with its annualized rate of return of up to 350%, secure Discreet Log Contracts (DLC) mechanism, and the first layer of Bitcoin, all transactions are protected natively on the Bitcoin blockchain. There is no need for packaging or bridging, only Bitcoin and other features and advantages.

It is expected that with the attention and use of more users, its lending status in the Bitcoin field will be determined, and the initial circulation market value of the project is only $12.65 million, and it is expected that the circulation market value will continue to rise.

IV. Economic model

Liquidium's tokens mainly serve the following purposes on the platform:

Borrowing collateral: Users can use Ordinals, Runes, and BRC-20 tokens as collateral to borrow Bitcoin.

Income generation: By lending Bitcoin, users can earn an annualized rate of return of up to 350%.

Incentive Mechanism: The platform has a future incentive section to reward active users and users who support the long-term development of the platform.

The total number of tokens for the Liquidium project is 100 million, and the specific distribution is as follows:

Future incentives: 20.00%, locked for 12 months, followed by linear release for 12 months.

Airdrop: 10.00%.

Treasury: 17.00%, locked for 12 months, followed by linear release for 12 months.

Core Team: 27.00%, locked for 12 months, followed by linear release for 12 months.

Market Making: 1.50%.

Investors: 22.00%, locked position for 12 months, followed by linear release for 12 months.

Advisors: 2.50%, locked position for 12 months, followed by linear release for 12 months.

The initial market capitalization is $12.65 million and the fully diluted valuation (FDV) is $110 million.

Liquidium's economic model aims to balance short-term incentives and long-term Sustainability. Future incentives and the treasury allocate 37% of tokens to ensure that the platform has sufficient incentive measures and fund reserves in the early stage. The core team and investors account for a total of 49%, reflecting the team and investors' commitment and confidence in the long-term development of the project. These tokens have strict lock-up and linear release mechanisms to avoid market sell-off risks. The market-making and airdrop parts are 1.5% and 10% respectively to ensure market liquidity and community participation.

The token release plan is designed rigorously to ensure market stability and predictability. All parts with lock-up periods are linearly released for 12 months after the lock-up period ends, allowing tokens to gradually enter the market and reducing the risk of market impact caused by sudden release of a large number of tokens.

V. Team and financing

Team aspect:

Robin Obermaier: Co-founder and CEO. Robin Obermaier is the leader of Liquidium, with a rich background in financial technology, and is committed to promoting the development of Bitcoin DeFi. He has previously successfully established multiple projects and communities, and has a deep understanding of blockchain technology.

Peter Giammanco: Co-founder and Chief Technology Officer (CTO). Peter Giammanco focuses on technology development and drives innovative solutions for Liquidium.

In terms of financing:

Seed round financing: Raised $2.75 million on July 18, 2024, with anchors including Wise3 Ventures, NGC Ventures, CMS Holdings, Newman Capital, Portal Ventures, Asymmetric, Dan Held, dingaling, ThreadGuy, etc.

Pre-Seed financing: Raised $1.25 million on December 11, 2023, with anchors including Sora Ventures, Bitcoin Frontier Fund, Side Door Ventures, UTXO Management, Actai Ventures, Spicy Capital, Portal Ventures, etc.

VI. Risk Warning

1. The cryptocurrency market is volatile, and large price fluctuations may lead to investment losses. Therefore, cautious decisions should be made and market risks should be fully understood.

2. Under extreme market conditions, liquidity shortages may occur, affecting transactions between borrowers and lenders.

VII. Official links

Website： https://liquidium.fi/zh/

Twitter： https://x.com/LiquidiumFi

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.