Borrowing and lending Bitcoin just got a major upgrade with Liquidium’s Alpha Test launch for Instant Rune Loans. The new DeFi platform is built for speed and simplicity, cutting out the usual hassle while ensuring seamless transactions. $LIQ token holders now have access to an efficient, frictionless way to leverage rune and ordinals assets, marking a shift in how borrowers and lenders interact on Bitcoin.
The process has been streamlined to a single click, allowing borrowers to receive funds instantly. Unlike traditional structures that impose fixed collateral bundles, this system provides the freedom to use any collateral amount. The rigid frameworks of the past are no longer an obstacle. Borrowers can enjoy more autonomy and flexibility, knowing that the process has been optimised to cater to their specific needs.
Lenders, too, stand to benefit. There is no need for countersigning—once a loan is offered, it can be left to function without further intervention. Lending opportunities are maximised, as offers can be partially filled instead of waiting for a full match. This means more lending opportunities are captured, reducing inefficiencies in the process. Both parties gain access to multiple term options, making the entire system more adaptable to individual preferences and market conditions.
Accessing this feature is straightforward. To borrow Bitcoin against Runes, users simply need to navigate to the “Borrow” section, select “Runes,” and use the toggle in the top right to enable “Instant.” The same ease applies to lending, where users head to the “Lend” section, select “Runes,” and activate the “Instant” toggle. Borrowers do not need to create a vault, adding to the effortless nature of the experience.
For lenders wishing to participate, a lending vault must be created through Liquidium. Depositing Bitcoin into the vault grants access to instant loans, eliminating delays often associated with loan processing. Importantly, any funds not used in a loan at the time of withdrawal can be retrieved from the vault without involving the ICP contract. This ensures lenders retain control over their assets, with no unnecessary hold-ups.
Security and transparency have been prioritised in the design of this feature. Each borrowing or lending transaction occurs directly on Bitcoin L1, ensuring trust in the underlying infrastructure. The vault itself is structured as a 1/2 multi-signature wallet, shared between the lender and the ICP contract. This mechanism guarantees that lenders maintain authority over their assets while facilitating the automation necessary for instant lending. Borrowers are relieved of the burden of pre-funding, as only lenders are required to deposit funds into the vault to enable instant Bitcoin lending.
The ICP Canister plays a crucial role in managing the process, acting as an assistant that handles loan agreements efficiently. The lender supplies the funds and grants the Canister the authority to sign contracts on their behalf when the borrower’s conditions align with their lending criteria. Once an agreement is reached, the Canister immediately signs on behalf of the lender, finalising the transaction without delay.
Should a lender decide to discontinue their engagement with the Canister, they can do so effortlessly. A standard Bitcoin L1 transaction is all it takes to withdraw funds, reaffirming the lender’s ability to exit at their discretion. This ensures that lenders remain in full control of their Bitcoin without unnecessary constraints.
With the launch of this Alpha Testing phase, a significant step has been taken toward simplifying and refining the process of borrowing and lending Bitcoin. The combination of automation, flexibility, and security creates an efficient framework that addresses previous limitations. By removing traditional bottlenecks, this innovation presents a compelling case for the future of digital lending.
