Borrow, Lend... On BTC

PLUS: Bitcoin ETFs Surpass Gold ETFs, The US Gov explores BTC strategic reserves, and so much more...

December 27, 2024

Happy Friday, Maestros!

We’re back again with an another edition of the Bitcoin Renaissance.

Bitcoin loan volumes pump, the US Gov looks to gain BTC exposure, and Bitcoin ETFs are officially > Gold.

Not to mention, as always, Maestro leads the charge with Bitcoin infrastructure!

PS. Don’t forget to follow us on X here.

🚀 Featured Stories

Bitcoin ETFs Surpass Gold ETFs in assets under management (AUM) in the United States. Bitcoin ETFs reached an AUM of $129.25 billion, slightly surpassing the AUM of gold ETFs, which stood at $128.88 billion. Bitcoin > Gold 🟧 

The U.S. government is considering establishing a Strategic Bitcoin Reserve, similar to the Strategic Petroleum Reserve, to diversify national assets and hedge against economic instability.

El Salvador has reached a $1.4 billion loan agreement with the International Monetary Fund (IMF), which requires the country to scale back its Bitcoin policies. As part of the agreement, El Salvador will make Bitcoin acceptance voluntary for private businesses, rather than mandatory, and will reduce public sector involvement in Bitcoin-related activities.

Russian companies are increasingly using Bitcoin for international trade to circumvent international sanctions. The policy aims to help Russian companies bypass Western sanctions and solve international payment difficulties, while potentially benefiting domestic energy companies by creating a new market of power-hungry bitcoin miners.

💡 Spotlight: Liquidium

Liquidium enables peer-to-peer lending on Bitcoin L1... and the protocol is growing like crazy. Here's a look at how they're transforming Bitcoin-backed loans and making DeFi accessible to Ordinal, Runes, and BRC-20 holders 👇️ 

Key Features

  • Ordinals Collateralization: Users can lock their Ordinals, Runes, and BRC-20 tokens as collateral while maintaining ownership exposure, unlocking instant BTC liquidity.

  • Bitcoin-Native Security: Liquidium uses a 2/3 multisig escrow system on Bitcoin, where borrowers, lenders, and the Liquidium oracle must collaborate to move assets.

  • Custom OTC Platform: Liquidium enables personalized over-the-counter loan offers for individual Ordinals, creating a flexible lending marketplace.

  • Timelock Protection: Built-in timelock mechanisms prevent lenders from accessing collateral before loan maturity.

Impact on the Bitcoin Ecosystem

Liquidium is expanding Bitcoin's DeFi capabilities by:

  • Enabling NFT Liquidity: Ordinal holders can access instant liquidity without selling their assets. This creates leverage that professional traders are looking to gain on their assets.

  • Trustless Architecture: Discreet Log Contracts (DLCs) and Partially Signed Bitcoin Transactions (PSBTs) create a fully non-custodial lending environment.

  • Security First: Atomic transactions ensure lending operations either complete fully or not at all, with complete on-chain verification.

The Future

As Liquidium grows, it bridges the gap between Bitcoin's store of value and DeFi functionality, unlocking new possibilities for Ordinal holders while maintaining Bitcoin's security and trustlessness.

Learn more about Liquidium here.

📣 Trending on X