Exploring Liquidium: The First Bitcoin-Based Lending Platform Using Ordinal Inscriptions with Over $125M in Trading Volume

Imagine owning a unique piece of digital art stored on the Bitcoin blockchain, similar to an NFT but with the security and decentralisation of Bitcoin.

Now, imagine being able to use this digital asset as collateral to borrow Bitcoin, without relinquishing ownership of your art.

This is the reality Liquidium brings to life.

What is Liquidium

Founded in August 2022, Liquidium is a groundbreaking platform that enables peer-to-peer Bitcoin lending.

Unlike traditional financial systems, Liquidium operates entirely on the Bitcoin blockchain, eliminating intermediaries and enhancing security.

The platform's core innovation lies in its ability to leverage Ordinal Inscriptions, unique digital assets stored on individual Satoshis, as collateral for Bitcoin loans.

Behind the Scene: Who Are the Creators?

Liquidium is the brainchild of a team of young entrepreneurs: Julian Mezger, Leonidas Zouvelos, Peter Giammanco, and Robin Obermaier.

Liquidium participated in the 3rd cohort of the Bitcoin Frontier Fund accelerator.

As part of this prestigious program, Liquidium’s founding team refined their startup skills and deepened their knowledge in building and scaling innovative projects.

The accelerator, formerly known as Stacks Ventures, provided invaluable support and resources during the 4-month program, helping Liquidium enhance its growth and development.

Robin Obermaier (Co-founder & CEO)

Socials: X | Linkedin

Robin Obermaier is the Co-Founder and CEO of Liquidium. Founding the company at 20, Robin left university to pursue his vision of making blockchain tools more accessible.

His leadership is focused on steering Liquidium toward becoming a key player in the blockchain liquidity space.

Julian Mezger (Co-Founder & CMO)

Socials: X | Linkedin

Julian Mezger, also known as Jay Mezger, is the Co-Founder and Chief Marketing Officer of Liquidium.

With a robust background in marketing and public relations from his role as a campaign manager at Hubert Burda Media, Julian drives Liquidium's growth and customer engagement.

Under his leadership, Liquidium has achieved over $80M in loan volume and 1600 WAUs.

Julian also brings experience from the Bitcoin Frontier Fund and BTC Startup Lab, where he has honed his skills in blockchain innovation and market research.

Peter Giammanco (Co-Founder & CTO)

Socials: X | Linkedin

Peter Giammanco is the Co-Founder and Chief Technology Officer of Liquidium.

With a background in software engineering from PNC and Penn State University, Peter drives the technical vision and innovation at Liquidium.

His previous experience includes internships at Capgemini and participation in the BTC Startup Lab, where he honed his skills in startup methodologies.

Leonidas Zouvelos (Co-Founder & CCO)

Socials: X

Leonidas Zouvelos is the Co-Founder and Chief Creative Director of Liquidium. He leads the creative vision, graphic design, and website development for the company.

How Does Liquidium Work?

Liquidium is a marketplace for borrowing and lending Bitcoin, with its mainnet launched on 31 December 2022.

What sets it apart is its unique collateral system. Instead of traditional assets, users can use Ordinals – digital assets inscribed on the Bitcoin blockchain – as collateral to secure loans.

This innovative approach opens up new possibilities for Bitcoin holders to unlock the value tied up in their Ordinals without relinquishing ownership.

To ensure security and transparency, Liquidium employs a combination of Partially Signed Bitcoin Transactions (PSBTs) and Discreet Log Contracts (DLCs).

PSBTs allow for the creation of partially signed transactions, offering flexibility and control to users.

DLCs, on the other hand, provide a framework for creating enforceable smart contracts directly on the Bitcoin blockchain. This combination underpins the platform’s trustless and secure environment.

A Strong Financial Foundation

Liquidium's potential has attracted significant investor interest.

Back in December 2023, Liquidium successfully closed its pre-seed funding round, raising over $1.25 million.

The round saw participation from notable investors including Sora Ventures, Bitcoin Frontier Fund, Side Door Ventures, UTXO Management, Actai Ventures, Spicy Capital, and Portal Ventures.

Recently, the platform secured a $2.75 million seed round from a star-studded lineup including Wise 3 Ventures, Portal Ventures, Asymmetric Capital, and industry heavyweights like Dan Held from Kraken and Nate Whitehill from CryptoSlate.

This funding influx will be instrumental in propelling Liquidium's growth and expansion.

The platform's rapid growth is evident in its performance metrics.

Since its launch in October 2022, Liquidium has facilitated over $125 million in cumulative trading volume, a testament to its increasing popularity among Bitcoin users.

The platform also experienced a surge in user activity in May, surpassing 500 unique lenders and 600 unique borrowers on 12 May.

The Strategic Advantage

Liquidium's differentiation lies in its exclusive focus on Bitcoin and the utilisation of Ordinals as collateral.

By operating entirely on the Bitcoin blockchain, Liquidium avoids the complexities and risks associated with cross-chain bridges and wrapped assets.

This approach enhances security and user trust. Additionally, Liquidium's peer-to-peer model promotes a more equitable and decentralised financial system.

Airdrop and Tokenomics

In a strategic move to reward early adopters and foster community growth, Liquidium executed a surprise airdrop of its native token, distributing 10% of the total supply.

This token generation event (TGE) allocated 7% of tokens to platform users and 3% to select Ordinals communities.

The airdrop was tiered, rewarding users based on their platform activity with users holding more than 1,000 points receiving 400 tokens, and those with less than 1,000 points getting 200 tokens.

Ordinals holders were also rewarded with 117 tokens per eligible ordinal.

The Liquidium token, with the ticker LIQUIDIUM, plays a crucial role in the platform's economy.

It incentivises user participation, strengthens community engagement, and provides a foundation for future governance and value accrual.

With a market capitalisation of $35 million at launch, the Liquidium token reflects investor confidence in the platform's future.

The airdrop marked the end of Liquidium's Genesis Season and the commencement of Season 1, a two-month period focused on user rewards.

The Road Ahead

Liquidium's journey is far from over.

The platform's focus on expanding wallet compatibility, integrating BRC-20 assets, and continuously enhancing the user experience demonstrates its commitment to growth.

As the Bitcoin ecosystem matures, Liquidium is well-positioned to capitalise on emerging opportunities and solidify its status as a cornerstone of Bitcoin DeFi.

https://t.co/IhitupVK0j
— Bitcoin Frontier Fund (@BTCFrontierFund) July 19, 2024
a

The intersection of Bitcoin, Ordinals, and DeFi has created a fertile ground for innovation.

A Bold Move in Bitcoin DeFi

Liquidium's focus on Ordinals and Bitcoin-native functionality positions it as a daring player in the DeFi space.

By leveraging the security and decentralisation of Bitcoin, Liquidium offers a unique lending and borrowing experience for Bitcoin holders.

The recent airdrop and successful funding rounds further solidify their commitment to growth.

Whether Liquidium can become a cornerstone of Bitcoin DeFi remains to be seen, but Coinlive believes its innovative approach has the potential to significantly impact the future of this evolving landscape.