Earn BTC by lending out your Ordinals

Liquidium raises $1.25 Million + in pre-seed round.

This indicates that the team is not just doing anything. But what can you do with this tool and how should you use it?

Intro:

Last week I had an interesting meeting with @robin_liquidium CEO & Co-founder of @liquidiumFi.

In this meeting/interview, I went through some questions with him to better understand the platform. Mr.Insights wouldn't be Mr.Insights if I didn't share this with you.

Let’s start!

Table of Contents

• Intro:

• What is Liquidium?

• Why should I borrow against my Ordinal?

• Why should I lend BTC against someone's Ordinal?

• How to Borrow or Lend Bitcoin?

  • How do I borrow Bitcoin using my Ordinals?

  • How can I lend Bitcoin and earn yield?

• Which Wallets are supported?

What is Liquidium?

Liquidium is the leading platform enabling peer-to-peer Bitcoin lending. Users can borrow or lend Bitcoin, using unique Bitcoin-based assets called Ordinal Inscriptions (Ordinals) as collateral. This is facilitated securely through Partially Signed Bitcoin Transactions (PSBTs) and Discreet Log Contracts (DLCs).

Why should I borrow against my Ordinal?

If you have a lot of money sitting in illiquid ordinals and you want to obtain some liquidity (for example for buying something else or paying some bill) your only option before liquidium is to sell some of your ordinals. liquidium allows you to borrow BTC against your ordinals while holding on to your ordinal, so you don't have to sell but still get liquidity. you can also do more degen things like leveraging your positions or even hedging against decreasing floor prices by borrowing against your ordinals.

Why should I lend BTC against someone's Ordinal?

By lending out your BTC to borrowers, you can earn significant interest on your BTC paid out in BTC. liquidium allows you to put your BTC to work by lending it out. The borrower's ordinal is used as collateral so if the borrower doesn't repay the loan, you will obtain their ordinal. This sometimes also leads to you getting ordinals below the floor price because of a loan default. The interest rate on liquidium is high and you get native BTC interest on your native BTC.

How to Borrow or Lend Bitcoin?

So, now you know why you should lend your Ordinal, or why you could borrow BTC with Liquidium.

But then, of course, it is not entirely unimportant to know how to do so.

For that, Robin has created a short how-to with an additional video where everything is clearly explained.

How do I borrow Bitcoin using my Ordinals?

1. Find a Collection: Visit https://app.liquidium.fi/borrow and locate a collection that you own an Ordinal from and click “Borrow”.

2. Select your Ordinal: Choose your desired Ordinal from the collection to use as collateral. The terms will be displayed.

3. Confirm Loan: Hit the "Borrow" button to confirm.

4. Await Lender's Approval: The lender has to sign and broadcast the transaction to start the loan. The lender must manually start the loan due to Bitcoin's technical structure.

5. Loan Starts: Once initiated by the lender, you will be notified, the loan begins, and you can monitor it under “Your Active Borrowings” on https://app.liquidium.fi/portfolio.

How can I lend Bitcoin and earn yield?

1. Choose a Collection: Pick from collections on this page https://app.liquidium.fi/lend.

2. Set and Confirm Offer: Decide your lending amount. Your lending amount must beat the current best offer.

3. Wait for Acceptance: Once a borrower picks your offer, you'll get a notification via email or Telegram.

4. Approve the Loan: Go to your portfolio page https://app.liquidium.fi/portfolio and confirm the loan under "Pending Signature" and sign in your wallet. The loan will start once you sign the transaction and it is confirmed.

Which Wallets are supported?

Currently, Liquidium is compatible with Xverse Wallet only. It's available as a browser extension, which you can download here.