$sLIQ: Introducing Bitcoin’s DeFi Liquid Staking Token
May 12, 2025
TL;DR
$sLIQ ($sLIQUIDIUM·TOKEN) is Liquidium’s liquid staking token on Bitcoin Runes.
Stake $LIQ → receive $sLIQ; 30 % of daily loan fees purchase $LIQ and are sent to the staking contract.
The $sLIQ ↔ $LIQ exchange rate rises each day as rewards accrue; new stakers mint at the current rate, preserving fairness.
$sLIQ remains fully transferable, tradable against BTC, and usable as collateral on Liquidium while carrying the same governance weight and fee‑rebate status as $LIQ.
This is the first Rune‑based LST for a live Bitcoin DeFi protocol, expanding Bitcoin’s DeFi toolkit with true liquid staking.
1. What Are Liquid Staking Tokens?
Staking secures a network or protocol, but the trade‑off has always been liquidity: once tokens are locked, they can’t be used elsewhere. Liquid Staking Tokens (LSTs) fix that by issuing a transferable receipt token that mirrors the underlying stake and automatically gathers the same rewards. Holders keep their yield and their flexibility.
Two common designs have emerged:
Model | How Rewards Appear | Representative Examples |
|---|---|---|
Rebasing | The LST balance increases while its price stays close to 1:1 with the underlying. | Lido’s $stETH (Ethereum) |
Reward‑bearing | The LST balance stays fixed; its market price drifts upward as rewards accumulate. | Rocket Pool’s $rETH (Ethereum), Jito’s $JitoSOL (Solana) |
Because LSTs remain liquid, they are widely used as collateral, in liquidity pools, and across DeFi money markets.
2. Why LSTs Matter for Bitcoin
For years, Bitcoin lacked a native fungible‑token framework, so LSTs were largely confined to smart‑contract chains. That changed with Runes, which allow fungible tokens to live directly on Bitcoin Layer 1. The experimentation began with #sUSDh, a yield‑bearing stable‑asset LST. Now, Liquidium is bringing the concept to a protocol‑governance token with $sLIQ.
3. How $sLIQUIDIUM·TOKEN ($sLIQ) Works
$LIQUIDIUM•TOKEN ($LIQ) is the governance and fee‑sharing token of Liquidium, Bitcoin’s leading decentralized peer‑to‑peer lending protocol. Proposal LIP‑12 introduces a staking module that converts $LIQ into $sLIQ at an exchange rate that evolves over time.
Stake – Deposit $LIQ and receive $sLIQ. At launch the rate is 1 $LIQ = 1 $sLIQ.
Daily Rewards – Thirty percent of Liquidium’s daily loan fees are used to purchase $LIQ, which is then sent to the staking contract.
Rising Exchange Rate – Because the pool of $LIQ inside the contract grows every day while the supply of $sLIQ stays fixed, each $sLIQ gradually represents more $LIQ. Example: if the pool grows by 2 %, the next day 1 $sLIQ might equal 1.02 $LIQ.
New Stakers – Anyone who stakes later mints $sLIQ at the current exchange rate, not 1:1. This keeps the value of every $sLIQ equal and prevents late entrants from diluting early stakers.
Unstake – After a 7‑day cooldown, holders can redeem their $sLIQ for the underlying $LIQ plus all accumulated rewards.
In short, the conversion rate rises automatically as protocol revenue flows into the pool, and that rate applies equally to everyone at the moment they join.
4. Benefits for Holders and the Ecosystem
Benefit | What It Means |
Passive Yield | Holders earn a share of protocol revenue without managing claims or gas. |
Liquidity | $sLIQ can be traded—initially on $sLIQ/BTC pairs—and integrated into future Bitcoin‑native DeFi tools. |
Collateral Utility | Users will be able to pledge $sLIQ as collateral on Liquidium’s peer‑to‑peer lending marketplace. |
Equal Governance & Rebates | Each $sLIQ carries the same voting power and fee‑rebate status as an equivalent amount of $LIQ. |
Pure Bitcoin Settlement | Staking relies on partially‑signed Bitcoin transactions (PSBTs) and Runes—no bridges or wrapped assets. |
5. How sLIQUIDIUM Compares to Other LSTs
Chain | Token | Reward Style | Distinguishing Feature |
Ethereum | $stETH | Rebasing | Largest LST by market cap |
Ethereum | $rETH | Reward‑bearing | Powered by permission‑less mini‑pools |
Solana | $JitoSOL | Reward‑bearing | Captures MEV yield on top of staking |
Bitcoin | $sLIQ | Reward‑bearing | First Rune‑based LST for a DeFi protocol |
Bitcoin | $sUSDh | Reward‑bearing | Yield‑bearing stablecoin LST |
6. How to stake $LIQ to receive $sLIQ
Visit the Staking Portal
Head over to stake.liquidium.org/stake to begin.
Connect Your Wallet
Connect a compatible Bitcoin wallet like Unisat or Xverse
Choose the Amount to Stake
You can enter a custom amount of $LIQ or click “Max” to stake your entire balance.
Prepare for the Transaction
Ensure your wallet has a small amount of BTC available to cover the transaction signature fee.
Confirm and Stake
Sign the transaction to complete the process.
Receive $sLIQ Instantly
Once confirmed, you’ll see $sLIQ in your wallet, representing your staked position.
Staking $LIQ for $sLIQ isn’t just about earning protocol rewards — it’s about aligning with the future of Bitcoin-native DeFi. With buybacks, fee perks, and growing utility, $sLIQ is your gateway to deeper participation in the Liquidium ecosystem.
Stake now and be part of Bitcoin’s next chapter at stake.liquidium.org.