ICP is now available as collateral on Liquidium, giving token holders a way to borrow against their holdings through a native cross-chain lending system built on Chain Fusion infrastructure.
The update allows ICP holders to supply their tokens as collateral on Liquidium and access liquidity without selling their position. The platform then issues supported borrowable assets based on loan terms that include loan-to-value ratios, repayment conditions and collateral requirements.
Liquidium, which already supports cross-chain lending flows using Internet Computer technology, has integrated ICP into its system for the first time. The move places the token inside a live lending environment rather than limiting it to holding or trading use cases.
At the centre of the setup is Chain Fusion, the Internet Computer’s interoperability technology that enables canisters to interact with assets across multiple blockchains without relying on traditional wrapped tokens or custodial bridges. Liquidium uses this infrastructure to support native asset interactions and cross-chain borrowing flows.
With ICP now included, users can open a loan position by locking their ICP as collateral and borrowing supported assets. The collateral remains secured within the protocol for the duration of the loan. As with any collateralised borrowing system, positions are subject to liquidation risk if collateral values fall below required thresholds.
Liquidium positions the addition as part of a broader move towards expanding practical use cases for ICP within decentralised finance. Until now, holders had limited options to deploy their tokens in lending markets without exiting their position. The new integration introduces borrowing against ICP as an alternative route for accessing liquidity.
The system also supports ckAssets, including ckBTC, ckUSDC and ckUSDT, which can be used within loan flows to speed up settlement and improve cross-chain efficiency.
For users, the process is designed to be straightforward. ICP is deposited as collateral, loan terms are reviewed within the platform, and borrowing is executed once a position is opened. Repayment and monitoring take place within Liquidium’s interface, with the collateral released once the loan is closed.
While the feature expands ICP’s role in decentralised finance, users are reminded that borrowing carries risk. Liquidium notes that users should pay attention to loan-to-value ratios and ensure they understand liquidation conditions before opening positions.
The integration also reflects a broader push within the ICP ecosystem towards developer-facing financial infrastructure. Liquidium’s SDK is available through the ICP Skills programme, offering tools for builders working on lending integrations, position tracking and cross-chain credit systems.
By bringing ICP into its collateral framework, Liquidium adds another layer to its existing cross-chain lending model and gives token holders a direct way to use ICP within DeFi markets without selling their assets.
Dear Reader,
Ledger Life is an independent platform dedicated to covering the Internet Computer (ICP) ecosystem and beyond. We focus on real stories, builder updates, project launches, and the quiet innovations that often get missed.
We’re not backed by sponsors. We rely on readers like you.
If you find value in what we publish—whether it’s deep dives into dApps, explainers on decentralised tech, or just keeping track of what’s moving in Web3—please consider making a donation. It helps us cover costs, stay consistent, and remain truly independent.
Your support goes a long way.
🧠 ICP Principal: ins6i-d53ug-zxmgh-qvum3-r3pvl-ufcvu-bdyon-ovzdy-d26k3-lgq2v-3qe
🧾 ICP Address: f8deb966878f8b83204b251d5d799e0345ea72b8e62e8cf9da8d8830e1b3b05f
Every contribution helps keep the lights on, the stories flowing, and the crypto clutter out.
Thank you for reading, sharing, and being part of this experiment in decentralised media.
—Team Ledger Life
Community Discussion