No LTV Liquidations

Liqudium does not use Loan-to-Value (LTV) based liquidations. The loan status depends on repayment within the set duration. If not repaid, the loan defaults and the collateral goes to the lender.

Max Offer Amount

The maximum amount you can offer as a lender is tied to the floor price of the corresponding collection. This means you can't lend more than the lowest-valued Ordinal in that collection. The floor price information is from Magic Eden.

If the floor price falls below the lender's offer amount, the lender will be notified.

What’s APY and how do I calculate it?

APY (Annual Percentage Yield) is the interest rate applied annually to a loan, including compound interest, showing the effective annual interest rate.

APY Calculation

APY=((1+interest_per_loan_duration100)365loan_duration_in_days1)×100\text{APY} = \left( \left(1 + \frac{\text{interest\_per\_loan\_duration}}{100} \right)^{\frac{365}{\text{loan\_duration\_in\_days}}} - 1 \right) \times 100

Who pays transaction fees?

Transaction fees are paid by the one broadcasting the transaction. Here are the possibilities:

  • Lender starts a loan → Borrower pays fees.

  • Borrower repays loan → Borrower pays fees.

  • Borrower claims ordinal (after repayment) → Borrower pays fees.

  • Lender claims ordinal (once loan ends without repayment) → Lender pays fees.

Does Liquidium charge fees?

Yes, Liquidium receives a 20% platform fee of the total borrowing cost rate charged on the loan. No fees are charged in case of a loan default.

The platform fee is subject to change.

Loan duration and borrowing cost rate / yield

Liquidium determines the duration and borrowing cost rate based on historical loan data, floor price volatility, trading volume, loan volume, and more. Terms are established for each collection individually, and you can find the current terms on Liquidium's website.

Is the team behind Liquidium public?

Yes, the Liquidium team is public. You can find everyone on LinkedIn with their real names. There's Robin (CEO), Julian (CMO), Pete (CTO), Luke (Lead Front End Dev), Sam (Lead Back End Dev), Kate (Head of Community), Shudu (Lead Data Analytics), James (HR/Operations), and Bogdan (Lead Bitcoin Dev).

What technology does Liquidium use?

Liqudium uses PSBTs and DLCs for the lending process and are partnered with DeepLake for their DLC APIs and Oracle.

You can learn more about DeepLake here.

How can I request new collections?

To request new ordinal collections, post your request in the feedback channel on Liquidium's Discord.

How long do transactions take on Liquidium?

Transactions typically take a minimum of 10 minutes and can last a few hours. Delays may occur due to spikes in mempool fees.

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