TL:DR
- You can use ETH as collateral on Liquidium and borrow an asset available in the app without selling your ETH first.
- Use Simple for a dedicated, address-based loan that does not require an account or wallet connection.
- Use Advanced when you want to sign in, supply ETH to a portfolio, and manage several supplied and borrowed positions together.
- Before borrowing, review the live rate, LTV, liquidation threshold, network, destination address, and repayment path.
What does it mean to borrow against ETH?
Borrowing against ETH means depositing ETH as collateral and taking out a loan in another supported asset. Your ETH remains locked while it secures the debt.
This gives you liquidity without selling the collateral first, but it does not remove market exposure. If ETH falls relative to the borrowed asset, the loan-to-value ratio rises and the position moves closer to liquidation. Interest also continues to accrue until the debt is repaid.
Liquidium supports two ways to manage an ETH-backed loan:
- Simple Loans create one dedicated loan with its own Loan ID, supply address, repay address, refund address, and destination address.
- Advanced lets you supply ETH to a signed-in portfolio and borrow against the combined collateral available there.
The assets you can borrow, available liquidity, rates, and loan terms depend on the live markets shown in the app.
How to get a Simple Loan using ETH
Choose Simple when you want a direct ETH-backed loan without connecting a wallet to Liquidium. You can send the collateral from any compatible wallet or account after generating the loan.
1. Choose the asset and amount to borrow
Open the Liquidium app and select Simple.
Under Borrow, choose the asset you want to receive and enter the amount. Under Collateral, select ETH. Liquidium shows the required ETH collateral together with the current rate, LTV, and relevant network costs.
Check the live values before continuing.
The available borrow assets and liquidity can change with the market.
Leave the Simple ICP assets toggle disabled when you want to use native ETH on Ethereum. Enable it when you want to select ckETH or another supported ckAsset over ICP. This toggle belongs to the Simple token picker and is separate from the Advanced setting.
2. Sign in or continue without an account
Signing in is optional. You can use Internet Identity or a supported wallet, or close the prompt and continue without an account.
While signed out, Liquidium stores recent Simple Loans in the current browser. If you sign in later, loans stored in that browser can be synced to your profile. A profile also lets you reuse saved addresses and manage notification settings.
Save the Loan ID and receipt even if you use a profile.
They give you another way to recover the loan details if browser data is cleared or you move to another device.
3. Enter the refund and destination addresses
The refund address must be able to receive ETH on Ethereum. Liquidium returns collateral there after full repayment or if the loan fails to open and the refund process completes.
The destination address must support the asset and network you selected under Borrow. Liquidium sends the borrowed funds there after the ETH deposit confirms and the loan opens.
Signed-in users can save and reuse compatible addresses through the shared address book. In every case, verify the network and full address before generating the loan.
The refund and destination addresses cannot be changed afterward.
4. Generate the loan and save the receipt
Review the available advanced settings, confirm the addresses, and select Generate loan.
Liquidium creates a six-character Loan ID, an ETH supply address, a repayment address, and a downloadable receipt. Save the Loan ID and receipt before sending ETH.
The receipt records the addresses and core terms needed to fund and manage the loan. Do not rely only on browser history.
5. Send ETH to the supply address
Send the required ETH to the displayed supply address from a compatible Ethereum wallet or account. Check the address and amount carefully before confirming the transaction.
Once the deposit has enough confirmations and the loan opens, Liquidium sends the borrowed asset to your destination address. If market movement pushes the loan outside the accepted opening terms, the loan may wait for more collateral or proceed through the failed-opening refund flow.
6. Monitor and manage the loan
Open Simple, then Portfolio, to view loans stored in the browser or synced to your profile. You can also use Find a loan with the Loan ID, one of the loan addresses, or a related transaction ID.
From the loan details, you can:
- review the current debt and LTV
- add ETH collateral through the supply address
- make a partial or full repayment through the repay address
- enable loan notifications
- inspect the transaction history
A partial repayment lowers the debt but does not release collateral.
ETH is returned to the refund address after the full debt has been repaid and processed.
For the complete operational flow, read the Simple Loan documentation and Simple Loan FAQ.
How to borrow against ETH with Advanced
Advanced is the portfolio-based route. Use it when you want to manage ETH alongside other supplied assets and borrowing positions from one profile.
1. Sign in and supply ETH
Sign in with Internet Identity or a supported wallet. You can supply ETH directly from a linked Ethereum wallet or send it to the deposit address shown by Liquidium.
If you want to use ckETH over ICP in Advanced, open Settings, select General, and enable ICP assets. This profile-level setting is separate from the toggle in the Simple token picker.
After the deposit confirms and finalizes, the ETH appears in your supplied balance and can be used as collateral.
The Supply guide covers both funding routes.
2. Choose what to borrow
Open the borrowing flow, choose an asset available in the app, and enter the amount. Review the projected effect on portfolio health before confirming.
Depending on the asset and route, borrowed funds can be sent to a linked wallet or another supported destination address.
See the Advanced borrowing guide for the current destination options.
3. Manage portfolio health
Advanced calculates health across the collateral and debt in your portfolio. Supplying more collateral or repaying debt can improve health. Borrowing more or a decline in collateral value can reduce it.
Monitor the whole portfolio rather than looking at ETH in isolation.
Other supplied and borrowed assets can also affect the position.
Simple or Advanced: which ETH loan flow should you use?
Choose Simple when you want to:
- borrow without creating an account or connecting a wallet
- create one dedicated ETH-backed loan with fixed addresses
- fund the loan from any compatible Ethereum wallet or account
- manage it with its Loan ID, receipt, and Simple Portfolio
Choose Advanced when you want to:
- keep ETH in a signed-in Liquidium portfolio
- manage several supplied and borrowed positions together
- use linked accounts and supported deposit-address flows
- evaluate borrowing against total portfolio health
Both routes involve debt and liquidation risk. The difference is how the collateral and loan are organized and managed.
How Chain Fusion supports ETH-backed loans
Liquidium uses ICP Chain Fusion so its canisters can interact with supported external blockchains, including Ethereum. Canisters can read chain state and authorize transactions through threshold cryptography, allowing Liquidium to coordinate lending flows around native assets without requiring the usual centralized bridge or wrapped-token setup.
For ETH holders, the practical result is a more direct route from Ethereum collateral to a cross-chain loan. The infrastructure remains technical, but the user-facing job is simple: choose the loan, verify the addresses and terms, send ETH, and manage the resulting position. For a deeper technical explanation, read Chain Fusion security and trust in cross-chain DeFi.
ETH and Liquidium's broader lending direction
ETH-backed borrowing is one part of Liquidium's wider cross-chain lending market. Depending on the live routes, users can supply assets such as BTC, ETH, ICP, and ckAssets, then borrow another supported asset without first selling the collateral.
Simple Loans keep each position separate through dedicated addresses and a Loan ID. Advanced brings supported supplied and borrowed assets into one signed-in portfolio. Together, the two flows let users choose between a direct loan and broader portfolio management as Liquidium adds more supported markets.
What to check before borrowing against ETH
Review these points before opening the position:
- Borrow asset: Confirm what you will receive and on which network.
- Collateral amount: Check how much ETH must be deposited.
- LTV: Understand the debt relative to the collateral value.
- Liquidation threshold: Know when the loan or portfolio becomes eligible for liquidation.
- Borrow rate: Review the live rate and how interest affects the repayment amount.
- Liquidity: Confirm the requested amount is available under the current market conditions.
- Addresses: Verify the ETH refund address and the borrow destination.
- Repayment path: Know which asset, network, and address you will use to repay.
- ETH volatility: Leave room for ETH price movement instead of borrowing at the edge of the available limit.
What happens if the ETH price falls?
If ETH falls while the debt value stays the same, the loan's LTV rises. A higher LTV means less collateral value supports each unit of debt.
If the position reaches the liquidation threshold, collateral may be sold to repay the debt. Adding ETH collateral or repaying part of the debt can lower LTV after the transaction is confirmed and processed, but neither action is guaranteed to arrive before liquidation during fast markets.
Notifications can help you track changes, but they are not a substitute for monitoring the position directly.
Risks of ETH-backed loans
Borrowing against ETH involves several risks:
- ETH price volatility and liquidation
- variable borrowing costs
- changes in market liquidity
- smart contract and protocol risk
- incorrect assets, networks, or destination addresses
- delayed confirmations or operational errors
- losses from how the borrowed funds are used
Liquidium has completed an independent Trail of Bits review of the ICP canisters used for Cross-Chain Loans. A security review provides useful technical assurance, but it cannot remove market, liquidation, or user-error risk. Read the security-review announcement for details.
Get a loan using ETH on Liquidium
Choose the flow that matches how you want to manage the position, check the live terms, and leave room for ETH price movement.
Open Liquidium to review the ETH-backed borrowing routes currently available.
Disclaimer: This article is for educational purposes only and does not constitute financial advice.
FAQs
Can I borrow against ETH on Liquidium?
Yes. You can use ETH as collateral and borrow an asset available through the live Liquidium markets. Check the app for current routes, rates, and liquidity.
Do I need to connect an Ethereum wallet?
Not for a Simple Loan. Generate the loan and send ETH to its supply address from any compatible wallet or account. Advanced also supports a linked Ethereum wallet and deposit-address flows.
Can I use Internet Identity for an ETH-backed loan?
Yes. Internet Identity can be used to sign in to a Liquidium profile. It does not replace the Ethereum transaction needed to supply ETH, but it lets you access the signed-in profile and its management features.
What can I borrow against ETH?
The available assets depend on current Liquidium markets and liquidity. Review the app before generating or confirming a loan.
What does LTV mean for an ETH-backed loan?
Loan-to-value compares the debt value with the ETH collateral value. If ETH falls or the debt grows, LTV can rise and move the position closer to liquidation.
Can I add more ETH after the loan opens?
Yes. For a Simple Loan, send ETH to the loan's supply address. In Advanced, supply more supported collateral to the portfolio. The transaction must confirm and process before it affects the position.
Does a partial repayment release some ETH?
Not in a Simple Loan. A partial repayment reduces debt and LTV, but the ETH collateral is returned only after the full debt is repaid and processed.
Can I borrow ETH instead of using it as collateral?
You can borrow ETH when a supported route with sufficient liquidity is available in the app. The required collateral and destination options depend on the selected flow.
Is borrowing against ETH the same as selling it?
No. Selling closes the ETH position. Borrowing keeps exposure to ETH while adding debt, interest, repayment obligations, and liquidation risk.
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