Bitcoin's ecosystem has expanded beyond just digital gold. Two innovations now define its application layer: Ordinals and Runes. While both enable new use cases on Bitcoin Layer 1, they serve distinct purposes. This guide compares Runes and Ordinals in-depth and highlights how both can be used as collateral on Liquidium.WTF to borrow Bitcoin.
TL;DR: Runes vs. Ordinals
- Ordinals let you inscribe unique data (like NFTs) on individual satoshis.
- Runes are Bitcoin-native fungible tokens (like ERC-20s on Ethereum).
- Both use Bitcoin Layer 1, no bridges or wrappers.
- You can borrow BTC using either asset on Liquidium.WTF.
What Are Bitcoin Ordinals?
Ordinals allow users to inscribe arbitrary data (images, text, videos) directly onto individual satoshis, creating unique digital artifacts—essentially, Bitcoin-native NFTs. The process leverages Bitcoin's Taproot upgrade and follows the "Ordinal Theory," assigning sequence numbers to sats based on their mining order.
Think of Ordinals as serial-numbered collectibles stored immutably on Bitcoin. Top collections include Taproot Wizards, Ordinal Maxi Biz (OMB) and Bitcoin Puppets.
What Are Bitcoin Runes?
Runes, created by Casey Rodarmor (who also invented Ordinals), are a new standard for fungible tokens on Bitcoin. Unlike BRC-20 tokens that rely on JSON data and Ordinal inscriptions, Runes are much simpler and more efficient.
Runes are ideal for memecoins, DeFi tokens, and any project needing multiple interchangeable units. They're inscribed and transferred using native Bitcoin transactions and require no off-chain dependencies.
Learn more in our guide: What Are Bitcoin Runes and How Do You Buy Them?
Key Differences Between Runes and Ordinals
Feature
Ordinals
Runes
Type
Non-fungible (NFT-like)
Fungible (ERC-20-like)
Use Cases
Art, collectibles, metadata
Tokens, memecoins, DeFi
Transfer Method
Native BTC transactions
Native BTC transactions
Creator
Casey Rodarmor
Casey Rodarmor
Borrowable on Liquidium.WTF?
Yes
Yes
How to Borrow BTC Using Ordinals or Runes on Liquidium.WTF
Both Ordinals and Runes can be used as collateral for Bitcoin loans on Liquidium.WTF using the Instant Loans feature.
1. Connect Your Wallet
Click Connect and choose your wallet. Xverse, UniSat, Leather, OKX, and Wizz Wallet are available in the app. Keep BTC available for network fees.
2. Switch to Instant Loans
Open Liquidium.WTF’s Bitcoin app, choose Borrow, and select the Ordinals or Runes tab for your collateral. Set the loan mode to Instant.
3. Select Collateral and Review Offers
Find your collection or Rune in the Borrow market and click Borrow beside it. Select the eligible collateral from your connected wallet, then review the BTC amount, interest, fees, LTV, and repayment deadline.
4. Accept and Receive BTC
Submit the offer you want to accept and sign the requested transaction in your wallet. Track its confirmation and the loan in Portfolio. Instant loans use funded lender vaults; manual loans also require the lender to countersign.
More details: How to Use Instant Loans on Liquidium.WTF
Use Cases and Benefits
Ordinals: Ideal for high-value digital artifacts. Use to borrow BTC while holding your collectibles.
Runes: Perfect for liquid assets and memecoins.
Borrowing and lending on Liquidium.WTF
- No Need to Sell: Maintain exposure to upside.
- Escrow and oracle model: Bitcoin PSBTs, multisig, and DLCs do not remove all trust assumptions. Liquidium.WTF’s oracle participates in loan resolution.
- Lending option: Lend BTC against eligible Ordinals and Runes on Liquidium.WTF, with quoted rates of up to 380% APY in selected Runes markets. APY is annualized; actual earnings depend on loan terms, fees, repayment, and time spent lending.
- Eligible collateral: Selected Ordinals and Runes. BRC-20 tokens are not accepted as Liquidium.WTF collateral.
- Hedging analogy: Borrowing can change price exposure, but it is not insurance. Interest, fees, and loss of collateral on default still matter.
Risks to Consider
- Volatility: Value of collateral can drop.
- Default Risk: If you don't repay, you lose your collateral.
- Illiquidity: Some assets may have limited offers.
Final Thoughts
Ordinals and Runes both represent Bitcoin's growing creative and financial ecosystem. Whether you're a collector or trader, both assets offer unique utility—and now, new financial power via Bitcoin-native lending.
Use Ordinals or Runes as Collateral to Borrow Bitcoin
Got rare Ordinals or hot Runes? Don't just let them sit—use them to access instant Bitcoin liquidity. With Liquidium.WTF, you can borrow BTC without selling your prized assets.
Connect your wallet to Liquidium.WTF and borrow Bitcoin against Ordinals and Runes today.
FAQ: Runes vs. Ordinals on Liquidium.WTF
Q: Can I use any Rune or Ordinals as collateral?
A: Liquidium.WTF supports select collections and tokens. Check the Borrow page to see if your asset is eligible.
Q: What happens if I don't repay my loan?
A: The lender can unlock your collateral. There are no LTV-based liquidations, but defaulting means losing your asset.
Q: What risks do Instant Loans have? A: Review the collateral, repayment deadline, oracle, and ICP vault/signing assumptions. Audits and Bitcoin-native transactions do not eliminate these risks.
Q: How fast can I get BTC with Instant Loans? A: Timing depends on the available offer, signing, and transaction processing. Follow the status in the app; confirmation timing is not guaranteed.
Q: Do I need a special wallet?
A: You'll need a wallet compatible with Ordinals or Runes, such as Xverse, Unisat, or OKX.
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