Liquidium adds Solana collateral for crypto-backed borrowing

Liquidium has added support for Solana’s native token, SOL, allowing users to borrow stablecoins and other digital assets against their SOL holdings without selling the cryptocurrency.

The integration offers two borrowing options, Simple Loans and Advanced Loans, each with different access and repayment arrangements.

Under Simple Loans, users can select SOL as collateral, choose an asset to borrow, and adjust the loan-to-value (LTV) ratio using a slider or manual entry. The platform says users can complete the process without connecting a wallet to get started.

However, SOL collateral is released only after the loan has been repaid in full. Partial repayments reduce the LTV but do not unlock the collateral.

Advanced Loans require users to sign in using a passkey, social account or supported wallet before supplying SOL as collateral. This option allows borrowers to make full or partial repayments and withdraw collateral separately. Users can also add further assets to an existing position and monitor their collateral, debt and repayments through a portfolio view.

Liquidium says both loan types carry liquidation risk if a position becomes unsafe. This means borrowers could lose their deposited collateral if market movements or changes in the loan’s value push the position beyond the platform’s permitted limits.

Users borrowing USDC are also advised to check the receiving network displayed in the application. The integration’s instructions identify Ethereum as the receiving network in the illustrated example, meaning borrowers need to use an address compatible with that network.

The addition gives Solana holders another option for accessing liquidity while retaining exposure to their SOL holdings. However, as with other crypto-backed loans, borrowers need to consider price volatility, repayment conditions and liquidation risks before taking out a loan.