Borrow Stablecoins Against Native ETH and BTC | Liquidium

TL;DR

• Liquidium Advanced lets eligible native BTC and native ETH supplies support stablecoin borrowing in one portfolio.
• Simple and Advanced work differently. Simple creates one dedicated loan with one collateral asset. Advanced combines eligible supplied assets and debts into one portfolio-health calculation.
• Native and ICP asset routes use different networks and address formats. Check the asset and network shown in the app before sending funds.
• Borrow APY, liquidity, fees, Max LTV, liquidation thresholds, and completion estimates can change. Review the live transaction before confirming.

Borrow stablecoins without selling ETH or Bitcoin

Borrowing against BTC or ETH gives you access to liquidity without selling the collateral first. You keep exposure to the collateral while it secures the debt.

That trade comes with interest and liquidation risk. If the collateral loses value or the debt grows, the position moves closer to liquidation. You need enough room to handle price movement and a realistic plan for repayment.

Liquidium supports stablecoin borrowing through two product modes:

• Simple creates a dedicated, address-based loan with one collateral asset. You can use it without an account or connected wallet.
• Advanced lets eligible BTC, ETH, and other supplied assets support debt through one signed-in portfolio.

BTC and ETH work together as collateral through the Advanced route.

Why use BTC and ETH together as collateral?

If you hold both BTC and ETH, Advanced can calculate borrowing capacity and liquidation risk across the eligible assets in your portfolio. You do not need to choose one asset and ignore the other.

Using both assets can create a broader collateral base, but it does not make the position safer by default. BTC and ETH can fall at the same time. Their prices, liquidation thresholds, and share of the portfolio all affect your portfolio health.

You can supply the assets you already hold, borrow a supported stablecoin, and manage the resulting debt from the same Advanced portfolio.

Simple or Advanced: choose the right flow

Choose Simple when you want one dedicated loan funded through a loan-specific supply address. Each Simple Loan has one collateral asset, one borrowed asset, a six-character Loan ID, a repay address, a refund address, and a destination address. Signing in is optional.

The Simple flow requires an LTV buffer of at least 2%. The setting controls the safety buffer below the market's Max LTV; no maximum-slippage parameter exists. Check the buffer and loan status shown in the app before funding because prices can move while the collateral transaction confirms.

Choose Advanced when you want to supply more than one eligible asset and manage borrowing against the combined portfolio. Advanced requires sign-in with Internet Identity or a supported wallet. You supply assets first, then borrow against the eligible active positions.

Read the Simple Loan documentation for the dedicated-loan flow or the Advanced borrowing guide for the portfolio flow.

One Advanced portfolio with native BTC and native ETH

In Advanced, each supplied asset remains a separate position, but eligible supplies contribute to the same portfolio-health calculation. If you supply BTC and ETH, both can support stablecoin debt under the current market rules.

Liquidium calculates a weighted liquidation threshold from the eligible collateral in the portfolio. The result depends on the value and liquidation threshold of each asset. The app then shows how a proposed borrow would change portfolio health before you submit it.

Simple creates a dedicated loan record. Advanced manages supplied positions and borrowed positions together under one profile rather than creating a single loan record containing two collateral deposits.

How stablecoin borrowing works in Advanced

1. Open Liquidium Advanced and sign in with Internet Identity or a supported wallet.
2. Select Supply and choose BTC, ETH, or another supported asset.
3. Confirm whether you are using the native-chain route or the ICP asset route.
4. Fund the supply through the linked-wallet or deposit-address method shown by the app.
5. Wait until Liquidium detects and finalizes the supply. Only eligible active supplies can support borrowing.
6. Open Borrow and choose USDC, USDT, or another available asset.
7. Enter an amount and review Borrow APY, available liquidity, network fee, projected portfolio health, and the expected amount delivered.
8. Confirm the destination and complete the authorization steps shown for that route.

Available assets and maximum amounts depend on pool liquidity, market caps, portfolio health, and current protocol settings. The live form is the source of truth at transaction time.

Native-chain routes and ICP asset routes

Liquidium supports two ways to enter and leave supported pools.

With ICP assets disabled, the app shows native assets on their native networks. BTC uses Bitcoin. ETH, USDC, and USDT use Ethereum. You send the asset to the native-chain address shown by Liquidium and receive borrowed funds on the destination network shown in the transaction.

With ICP assets enabled, the app shows supported chain-key assets such as ckBTC, ckETH, ckUSDC, and ckUSDT on ICP. These are separate assets on a different ledger. Send only the exact asset to the complete address or principal format requested by the app.

Liquidium pools use chain-key assets internally. The native route handles the conversion behind the interface, so you do not need to bridge or wrap the asset yourself. If you already hold a supported ckAsset, the ICP route lets you use it directly.

Never send native BTC to a ckBTC address, native ETH to a ckETH account, or a ckAsset to a native-chain address. The ICP assets guide explains the current address formats.

Where borrowed stablecoins are delivered

Native USDC and USDT settle on Ethereum when ICP assets are disabled. ckUSDC and ckUSDT settle over ICP when ICP assets are enabled.

Depending on the selected asset and current flow, Advanced may send borrowed funds to a supported linked wallet or a compatible destination address. Follow the destination method shown for that transaction.

Check the full address, network, and asset before confirming. A wrong address or wrong-network transfer may not be recoverable. Native ETH destinations must use a standard Ethereum wallet address; smart contract wallet addresses are not supported for native ETH outflows.

APY, liquidity, fees, and timing

Borrow APY is variable. It changes with pool utilization and market conditions, and interest accrues while the debt remains active. A rate shown before submission is not a fixed rate for the life of the position.

Liquidity and market caps can reduce the maximum borrow below the amount your collateral would otherwise support. Review the available amount and projected APY in the live form instead of relying on a screenshot or an article-level number.

Completion time also varies. Native-chain transactions need the required confirmations before Liquidium can finish processing them. The app shows an estimate and transaction reference for the selected route. Advanced debt can affect portfolio health before the outbound transfer reaches its destination, so do not treat submission and delivery as the same event.

Portfolio health, LTV, and liquidation

Simple Loans show loan-level LTV. Advanced uses portfolio health because several supplied and borrowed positions can affect the same risk calculation.

In the default Advanced interface:

• 100% Health means there is no active debt.
• A lower percentage means the portfolio is closer to liquidation.
• 0% Health is the liquidation boundary.

Each market has its own Max LTV and liquidation threshold. Max LTV limits how much you can borrow when opening or increasing a position. The liquidation threshold determines when collateral can be liquidated. Check current values on the Liquidium Insights page.

If the portfolio becomes liquidatable, external liquidators may repay part of the debt and receive collateral under the protocol's current close-factor and liquidation-bonus rules. Severe undercollateralization can allow a larger liquidation.

Keep a buffer. Repaying debt or adding eligible collateral can improve portfolio health after the transaction confirms and Liquidium processes it. A pending repayment or deposit does not protect an at-risk position yet.

Repayment and withdrawal work differently

Advanced debt has no fixed repayment date. You can repay part or all of it through the linked-wallet or repay-address method shown for the borrowed asset.

Interest continues to accrue until the repayment becomes active. Copy the current amount from the app when making a full repayment, and use the exact asset, network, and address requested for the position.

Repaying Advanced debt does not send supplied BTC or ETH back to your wallet. After the debt is reduced or cleared, use the separate Withdraw action for eligible supplied assets. The available withdrawal amount depends on pool liquidity and whether the withdrawal would leave the portfolio healthy.

Simple works differently. A partial Simple repayment lowers debt and LTV but releases no collateral. Full repayment returns the collateral to the refund address after confirmation and processing.

See the repayment guide and withdrawal guide before moving funds.

How Chain Fusion fits in

Liquidium uses ICP Chain Fusion and threshold cryptography to coordinate supported Bitcoin, Ethereum, and ICP transactions without a centralized bridge operator.

Canisters can read supported chain state and authorize transactions on external networks. Chain-key assets provide the pool accounting and 1:1-backed representation used by the protocol. The native-chain route hides that plumbing from the user while preserving native deposits and outflows where supported.

Read the cross-chain architecture documentation for the deposit, borrow, repayment, and withdrawal flows.

Risks of borrowing stablecoins against BTC and ETH

BTC and ETH can move sharply, and they often move in the same direction. Falling collateral value, growing debt, or a change in relative asset prices can reduce portfolio health.

Borrow APY and available liquidity can change. Network congestion can delay deposits, repayments, or outflows. Wrong-network transfers, incompatible addresses, oracle problems, smart-contract bugs, and liquidation can cause losses.

Liquidium completed an independent Trail of Bits review of the ICP canisters used for Cross-Chain Loans. That review covers the examined code and scope. It does not remove market, protocol, network, or user-error risk.

The bottom line

Liquidium Advanced can use eligible native BTC and native ETH supplies together to support stablecoin borrowing in one portfolio. Simple remains the better route when you want one dedicated, address-based loan without signing in.

Before borrowing, choose the correct mode, confirm the native or ICP route, review the destination, and check the live APY, liquidity, fees, portfolio-health impact, and repayment method.

Open Liquidium Advanced to review the current stablecoin markets.

Disclaimer: This article is for educational purposes only and does not constitute financial advice.

FAQs

Can BTC and ETH support the same stablecoin debt on Liquidium?

Yes, through Advanced. Eligible BTC and ETH supplies contribute to the same portfolio-health calculation and can support borrowed USDC, USDT, or another available asset. Simple Loans use one collateral asset per dedicated loan.

Do I need to sign in?

Advanced requires sign-in with Internet Identity or a supported wallet. Simple can be used without an account or wallet connection. Optional Simple sign-in syncs browser-stored loans to a profile and enables saved-address features.

Can I borrow native USDC or USDT?

Check the live asset picker. With ICP assets disabled, supported USDC and USDT outflows settle on Ethereum. With ICP assets enabled, the corresponding ckAssets settle over ICP.

What is the minimum LTV buffer in Simple?

The Simple setting requires at least a 2% LTV buffer below the market's Max LTV. The setting only controls that safety buffer; no maximum-slippage parameter exists.

Does Advanced show one LTV for BTC and ETH?

Advanced shows portfolio health based on the eligible collateral, active debt, prices, and weighted liquidation thresholds across the portfolio. Simple uses loan-level LTV.

When does interest start accruing?

Interest starts when the debt position becomes active. In Advanced, the debt can affect portfolio health before the outbound transfer reaches its destination.

Does repaying return my collateral?

In Simple, full repayment returns collateral to the refund address after processing. In Advanced, repayment reduces debt; you withdraw eligible supplied assets through a separate action.

Can a pending repayment stop liquidation?

No. A repayment improves the position only after it confirms and Liquidium processes it. Liquidation can occur first if the position reaches the liquidation boundary while the repayment is pending.

Where can I check current rates and risk parameters?

Use Liquidium Insights for live Borrow APY, utilization, liquidity, Max LTV, liquidation thresholds, caps, and other market parameters.