TL;DR
- Cross-chain crypto lending lets you use collateral on one supported network to borrow an asset delivered on another.
- On Liquidium, Simple creates one loan without requiring an account or wallet connection. Advanced uses supplied collateral and combined portfolio health.
- Native routes use assets such as BTC and Ethereum stablecoins from the user's wallet or address. ICP routes can use native ICP or supported ckAssets. Always match the asset, network, and address shown in the app.
- These loans are overcollateralized. Rates can change, interest accrues while debt is active, and the position can be liquidated if its LTV or portfolio health reaches the applicable threshold.
Cross-chain lending gives a Bitcoin holder access to liquidity on another network without selling the BTC first. A common example is using native BTC as collateral and receiving a supported stablecoin on Ethereum.
The loan still carries debt, interest, and liquidation risk. The cross-chain part changes how the protocol coordinates collateral and delivery. It does not remove the basic risks of borrowing against a volatile asset.
What is cross-chain crypto lending?
Cross-chain crypto lending lets you deposit collateral on one blockchain and borrow an asset that settles on another. The collateral stays locked under the loan rules while the debt remains open.
This differs from moving the same asset through a bridge. You are opening a collateralized loan. The protocol values the collateral, records the debt, charges interest, and monitors the position for liquidation.
Liquidium uses lending pools for supported assets. Suppliers provide liquidity and earn a variable supply APY. Borrowers draw from available pool liquidity and pay a variable borrow APY. The amount available depends on collateral value, live risk parameters, market limits, and pool liquidity.
For a deeper product walkthrough, read the guide to using Liquidium. This article stays focused on how BTC-backed cross-chain borrowing works.
Choose Simple or Advanced
Open the Liquidium app and use the selector at the top of the interface.
Choose Simple when you want one dedicated loan. You choose the borrow and collateral assets, enter refund and destination addresses, generate the loan, and send collateral to its supply address. You can do this without creating an account or connecting a wallet.
Choose Advanced when you want to supply assets, borrow against eligible supplied collateral, and manage debt through a combined portfolio. Advanced requires sign-in with Internet Identity or a supported wallet.
Borrow against BTC with Simple
Simple is the direct path for a BTC-backed cross-chain loan. Each loan has its own addresses, Loan ID, receipt, LTV, and transaction history.
1. Choose the loan assets
Select Simple, then Borrow. Choose the asset you want to receive and BTC as collateral.
Enter the amount to borrow. Review the required BTC, borrow APY, LTV, network fees, and the amount expected at the destination. The live asset picker and form are the source of truth for supported markets and available liquidity.
Leave room for BTC price movement and accrued interest. Borrowing at the maximum gives the position less time to recover if BTC falls.
2. Sign in or continue on this device
Simple does not require an account. While signed out, Liquidium stores recent loans in the current browser and labels them Saved on this device only.
Sign-in is optional. Internet Identity and supported wallets can keep Simple Loans on your profile, make them available from another device, reuse saved addresses, and apply a configured profile email to loan notifications.
Save the Loan ID and receipt even if you sign in. They remain useful backups if browser storage is cleared or you lose access to the original device.
3. Enter the refund and destination addresses
The refund address receives BTC after full repayment or after a failed loan-opening refund. The destination address receives the borrowed asset after the BTC deposit confirms and Liquidium opens the loan.
Use addresses that support the exact asset and network shown. Signed-in users can save compatible addresses and reuse them across Simple and Advanced.
Check both addresses before generating the loan. They cannot be changed afterward, and a transfer to the wrong address or network may not be recoverable.
4. Generate and fund the loan
Review the LTV buffer and delivery-window settings shown by the app, then generate the loan. The current LTV buffer control accepts values from 2% to 50%, so choose a larger buffer if you want more room before funding. Liquidium provides:
- a six-character Loan ID
- a supply address for BTC collateral
- a repay address for the borrowed asset
- a downloadable receipt
Send the displayed BTC amount to the supply address. The current BTC deposit route waits for four Bitcoin confirmations. Four blocks take about 40 minutes at Bitcoin's average block interval, but individual blocks can arrive sooner or later. Liquidium still needs to detect and process the confirmed deposit, so follow the loan status instead of treating 40 minutes as a deadline.
If the LTV moves outside the accepted opening range before the deposit is registered, the loan may wait for more collateral or enter the refund process. Use at least the required 2% buffer and choose more room if that better fits your risk tolerance.
5. Track and repay the loan
After the loan opens, Liquidium sends the borrowed asset to the destination address. The loan then appears in Simple → Portfolio if it is stored in the browser or synced to the signed-in profile. You can also find it with its Loan ID, a related address, or a transaction ID.
Interest accrues while the debt is active. You can make a partial or full repayment by sending the borrowed asset on the required network to the repay address. A partial repayment lowers debt and LTV but does not release collateral. Liquidium returns the BTC to the refund address after the full debt has been repaid and processed.
The Simple Loan documentation covers loan states, failed openings, notifications, repayments, and loan recovery in more detail.
Native assets, ICP, and ckAssets
Liquidium's native route lets you send BTC on Bitcoin and receive supported Ethereum assets on Ethereum. You do not operate a third-party bridge or wrap the assets by hand.
Behind the user flow, Liquidium uses canisters on the Internet Computer and ICP Chain Fusion to coordinate supported networks. Liquidium pools use chain-key assets for supported Bitcoin and Ethereum assets. A confirmed native deposit can enter the corresponding ckAsset pool route before Liquidium processes the lending action.
You can also use supported assets directly over ICP. Current ckAsset support includes ckBTC, ckETH, ckUSDC, and ckUSDT. Native ICP stays on the ICP ledger and does not need a ckAsset conversion.
Simple exposes ICP and supported ckAssets through its own asset picker control. Advanced uses a separate ICP assets setting and address flow. In either mode, check the asset name, network, and complete address format before sending funds. Native assets and ckAssets are not interchangeable at an address.
Read ICP assets and Oisy for current address formats and wallet limitations. The Cross-Chain Flow documentation explains the native-chain and direct ckAsset routes.
Borrow with Advanced
Advanced uses eligible assets already supplied to the profile as collateral.
Select Advanced, sign in, and supply a supported asset if the portfolio does not have eligible collateral. After the supply becomes active, open Borrow and choose an available asset.
Before confirming, review:
- the current and projected borrow APY
- the effect on portfolio health
- available pool liquidity and the maximum amount
- the network fee and estimated amount delivered
- the linked-wallet or destination-address route shown for that asset
Follow the authorization and destination steps shown by the app. Borrowed funds may go to a supported linked wallet or to a compatible destination address. For an ICP asset or ckAsset, use the address format requested by the current flow. Native ICP wallet connection is not currently available.
Advanced debt has no fixed repayment date while the position remains healthy. You can repay part or all of the debt. Repayment reduces debt after it confirms and processes. It does not withdraw supplied collateral, so use the separate withdrawal action when the remaining balance is eligible.
See the Advanced Borrow documentation for the current submission and destination flow.
Confirmations and delivery time
Cross-chain actions pass through the source network, Liquidium's processing steps, and the destination network. Timing changes with the asset, route, confirmations, and current network conditions.
Advanced progress screens can show stages such as Fetching details, Approve borrow, and Processing borrow. The success screen shows an estimated completion time and transaction reference. Use that estimate and the live transaction status instead of a fixed chain-wide promise.
An Advanced debt position can appear in Portfolio and affect health before the outbound transfer reaches its destination. Interest starts when the debt position becomes active. Do not assume a delayed destination transfer means the debt is still inactive.
The same caution applies to repayments and added collateral. A pending action does not change an at-risk position until Liquidium confirms and processes it. Liquidation can occur first during a fast market.
Rates, health, and liquidation
Liquidium uses oracle prices to value collateral and debt. The protocol uses those values with each market's Max LTV and liquidation threshold.
Simple shows LTV for one loan. Advanced shows portfolio health across eligible supplied collateral and debt. The app defaults to a health percentage where 100% means no Advanced debt and 0% means the portfolio has reached the liquidation threshold.
Borrow APY changes with pool utilization and market conditions. Interest adds to the debt while it remains active. A fall in BTC's price, more borrowing, or accrued interest can move a position closer to liquidation.
If a Simple Loan reaches its liquidation threshold, the protocol can sell collateral to repay debt. The current Simple guidance allows an initial liquidation of up to 50% of collateral, with full liquidation possible in severe cases. Advanced liquidation depends on portfolio health and the position's severity. Check the live Health Factor documentation and Insights page because asset parameters can change.
Repaying debt or adding eligible collateral can lower risk after the transaction processes. Keep a buffer and monitor the position directly. Notifications can help, but they do not replace active monitoring.
Benefits and tradeoffs
BTC-backed cross-chain lending can provide stablecoin liquidity without selling the BTC first. It also removes the need to assemble a manual bridge and wrapped-asset route for supported markets.
The tradeoff is an active debt position. You pay a variable rate, must keep the position above its liquidation threshold, and depend on pool liquidity plus several network and protocol components. Address mistakes, network congestion, smart-contract faults, oracle problems, and sudden collateral-price moves can all cause losses or delays.
Liquidium is non-custodial. The protocol does not take your wallet private keys. Canister vaults and smart contracts lock and manage collateral under the loan rules, so locked BTC is not sitting in your wallet while it secures the debt.
Liquidium completed an independent Trail of Bits review of the ICP canisters used for Cross-Chain Loans. A security review can identify and help fix implementation issues, but it cannot remove market, liquidation, network, liquidity, or user-error risk. Read the security-review announcement for the scope and report link.
This article is for educational purposes only and does not constitute financial advice. Crypto-backed borrowing can result in partial or total loss of collateral.
Open a cross-chain loan
Open Liquidium and choose Simple or Advanced. Check the live asset, network, rate, fees, LTV or portfolio health, destination, and estimated timing before you fund or confirm anything.
FAQs
Do I need an account for cross-chain lending on Liquidium?
No account is required for a Simple Loan. Advanced requires sign-in. You can sign in while using Simple if you want profile syncing, saved addresses, and profile-linked notifications.
Do I have to connect a Bitcoin wallet?
No. Simple lets you generate a loan and send BTC to its supply address from a compatible wallet, hardware-wallet setup, or exchange account. Advanced uses a signed-in profile and the funding route shown for the selected asset.
Do I need to wrap or bridge BTC myself?
No. For supported native routes, Liquidium coordinates the chain-key and cross-chain steps inside the protocol. You send and receive the native assets shown by the app. Direct ICP routes use ICP or the selected ckAsset instead.
How long does a BTC-backed loan take?
The current BTC deposit route requires four confirmations, which takes about 40 minutes at Bitcoin's average block interval. Actual block timing and Liquidium's processing time vary. Other assets and routes have different timing, so use the live status and estimate.
Can I repay early or in parts?
Yes. Simple and Advanced support partial and full repayments, and the debt has no fixed maturity while the position remains healthy. Interest continues while debt is active. For Simple, collateral returns after full repayment. For Advanced, repaying debt and withdrawing supplied collateral are separate actions.
Can a cross-chain loan be liquidated?
Yes. These loans are overcollateralized. Falling collateral prices, more borrowing, or accrued interest can move a loan or portfolio to its liquidation threshold. Repay debt or add eligible collateral before the position reaches that point, and wait for the action to process before relying on it.
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