Liquidium.WTF's Bitcoin market lets borrowers use eligible Runes as collateral and lets lenders offer BTC against those assets. Each offer specifies its loan amount, interest, and duration; returns are not guaranteed.
Read on to learn how you can borrow and lend bitcoin using Runes as lending collateral on Liquidium.WTF.
What Is Bitcoin Runes Lending?
Runes lending refers to lending your bitcoin (BTC) to a borrower who puts up Runes tokens as collateral for the bitcoin loan.
If the borrower repays on time, the lender receives the principal and agreed interest. On default, the lender can claim the collateral instead, and its resale value may not cover the BTC lent.
Conversely, if you want access to short-term bitcoin liquidity (without having to buy BTC), you can post your Runes as collateral and borrow BTC quickly and easily–no paperwork required. Before the end of the duration term, you pay it back and regain access to your Runes tokens.
How to lend against eligible Runes
1. Open Liquidium.WTF’s Bitcoin app, choose Lend, and select Runes. Click Connect and choose a compatible wallet.
2. Find the Rune you want to lend against and click Lend. Review the loan amount, interest, duration, and LTV. For Instant lending, create and fund a BTC vault and configure your offer. For Manual lending, create an offer and countersign when a borrower accepts it. Review and sign each requested transaction in your wallet.
Lend BTC on Liquidium.WTF at quoted rates of up to 380% APY in selected Runes markets. APY is annualized, not the interest earned on one short loan. Actual earnings depend on the agreed terms, fees, repayment, and how long your BTC is lent out.
Instant-loan vault and signing model
How to borrow against eligible Runes
1. Open Liquidium.WTF’s Bitcoin app, choose Borrow, select Runes, and connect your wallet. Choose Instant or Manual mode.
2. Find your Rune and click Borrow. Select eligible collateral, then review the BTC amount, interest, fees, and repayment deadline. Submit your chosen offer and sign the requested transaction in your wallet.
3. Track the transaction and loan in Portfolio. Instant loans use funded lender vaults; Manual loans also require the lender to countersign. Bitcoin confirmation times vary.
Open Bitcoin borrowing markets
Access Liquidium.WTF to Borrow and Lend BTC Using Runes Collateral
If you’re ready to start earning interest on your BTC or want to access short-term bitcoin liquidity, the lending dapp Liquidium.WTF is your best place.
Liquidium.WTF’s Bitcoin markets also include selected Ordinals. BRC-20 collateral and the former Swap service are not available.
Disclaimer: This article does not constitute financial advice, and we strongly recommend conducting your own research and consulting with a professional financial advisor before making any investment decisions. We are not liable for any potential losses incurred from applying the strategies discussed. Proceed with caution and at your own risk.
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