How to Use Liquidium | Guide to Native Cross-Chain Lending

Introduction

Liquidium is a native cross-chain lending protocol that lets users supply assets and borrow across chains without relying on centralized bridges or wrapped assets. This guide walks through wallet setup, supplying liquidity, borrowing USDT against BTC, and monitoring portfolio health.

Step 1: Connect & Create Your Profile

Liquidium eliminates the friction of traditional sign-ups. We use Wallet-Based Authentication, which means you don’t need a username, password, or KYC to get started. Your wallet acts as your secure login.

1. Launch the App

Visit https://liquidium.fi/, launch the app and click the  “Sign in” button

2. Select your wallet

Choose the wallet that holds the assets you want to use. We support several non-custodial wallets across Bitcoin and Ethereum:

• For Bitcoin: Unisat, Xverse, OKX Wallet, Phantom
• For Ethereum: MetaMask, Rabby, Phantom

Unlike many dApps that treat each wallet as a separate account, Liquidium lets you link multiple wallets to one user profile.
This makes it easier to view your portfolio, manage collateral, and monitor positions across chains from one dashboard.
If you prefer not to use a hot wallet for deposits, you can also send Bitcoin from an exchange or hardware wallet to a generated deposit address linked to your profile.
In that case, your hot wallet is only needed to create the profile.

Step 2: Supply Liquidity

You can supply supported assets such as BTC and USDT through the same basic flow.

We use Bitcoin in this example, but the process is similar for other supported assets.

1. Navigate to Supply

Click the Supply tab and select the asset you wish to lend (e.g., BTC or USDT).

Enter Amount: Type in the exact amount you wish to supply.

• Tip: You can also click the "Max" button to supply your entire available balance.

2. Review Pool Metrics

After entering the amount you want to supply, you’ll see several key metrics:

Supply APY

This is the current annual percentage yield you earn for supplying the asset.

The rate increases when:

• Pool utilization rises
• Market demand increases
• Available liquidity decreases

Note: Rates are variable and update dynamically based on pool utilization and market conditions.

Portfolio Health

Portfolio health reflects the overall safety of your borrowing positions.
Here, you can see how supplying liquidity changes that health score.
Depending on your settings, it may appear as a decimal (for example 1.5) or percentage (for example 150%).
Higher portfolio health generally means lower liquidation risk.

Points Earned

This displays the number of points you generate by fulfilling this specific action.

Fee Rate

This indicates the network fee you decide to pay for blockchain processing.

Higher fees generally result in faster transaction confirmation.

3. Choose Your Deposit Method

• Connected Wallet: The app initiates the transaction for you — simply review and sign the request in your wallet pop-up (e.g., Xverse or MetaMask).
• External Transfer: Use the generated Deposit Address to send funds manually from a cold wallet or exchange without connecting directly. This flow applies to both native assets and chain-key assets.

Note: To supply ckAssets, update your settings to display the correct ckAsset deposit address.

4. Confirm & Finalize 

Once you are ready, confirm the transaction via your connected wallet (e.g., Xverse, Phantom) or send funds manually to your Deposit Address from an exchange or cold wallet.

After broadcasting, your transaction enters a security phase. All blockchains require a specific number of block confirmations to prevent "reorgs"—temporary network events where recent blocks could be reordered.

• For Bitcoin: The industry standard is 4 confirmations (approximately 40 minutes). This ensures your deposit is mathematically irreversible before it is credited to the pool.
• For Other Chains: Faster chains (like Ethereum or Solana) require fewer confirmations, allowing for quicker settlement.

You don’t need to guess when your funds arrive. Monitor the exact status of your deposit—including the live confirmation count—directly in your Pending Tab or the Portfolio Dashboard.

Once finalized, your assets automatically enter the pool and begin earning real-time interest immediately.

Step 3: Borrow USDT – Get Stablecoin Liquidity

Borrowing against BTC lets you access stablecoin liquidity without selling your Bitcoin. You can use that liquidity for trading, expenses, or other onchain activity.

1. Navigate to Borrow

Click the Borrow tab and select the asset you want to receive (e.g., USDT).

2. Enter Loan Amount

Type in the amount of USDT you wish to borrow.

Visual Check: As you type, watch the Portfolio Health bar. It updates in real-time.

Aim to keep portfolio health at a comfortable level to reduce liquidation risk.

3. Review Loan Metrics

Before confirming, check the key data points displayed on your dashboard:

• Borrowing APR: The annualized interest rate you will pay. This is variable and adjusts based on pool utilization.
• Portfolio Health: Your safety score. A higher percentage (closer to 100% or above) means lower risk.
• Points Earned: The reward points you accumulate for active participation in the protocol.
• Positions Balance: Your total position value (Collateral minus Debt).

4. Sign & Confirm

Click Borrow and sign the transaction in your wallet.

Your Bitcoin collateral is securely locked, and the requested USDT is sent either directly to your Ethereum wallet or to your destination address, e.g., cold wallet or CEX. 

You can now use this stablecoin liquidity for trading, yield farming, or expenses — without selling your supplied asset.

Key Features

Cross-Chain Lending

Supply assets on one chain and borrow on another through a single interface.

Non-Custodial Design

Liquidium is non-custodial. Smart contracts coordinate the process, while users retain control of their own wallets and keys.

Clean and Intuitive UI

The interface is designed to make lending, borrowing, and collateral management easier to navigate.

Institutional-Grade Transparency

Transactions are verifiable onchain, and protocol activity is visible through transparent smart contract infrastructure.

Instant Liquidity Access

Borrowers access pool liquidity directly, without relying on a manual counterparty match.

Final Thoughts

Liquidium is designed to make cross-chain lending more accessible for users who want to supply assets, borrow against collateral, and manage positions without relying on centralized bridges or wrapped assets.
The protocol has also undergone independent security review, helping users evaluate the architecture and risk model with more confidence.

Additional Resources: How to Borrow USDT on Ethereum Using Native Bitcoin on Youtube.

Get Started With DeFi Lending Today on Liquidium

If you want to explore cross-chain lending with native assets, Liquidium provides a practical way to supply liquidity, borrow against collateral, and manage positions across chains.

You can learn more through the app, related guides, and supporting documentation.

Liquidium expands the possibilities of decentralized finance.

Disclaimer: This article does not constitute financial advice, and we strongly recommend conducting your own research and consulting with a professional financial advisor before making any investment decisions.

We are not liable for any potential losses incurred from applying the strategies discussed. Proceed with caution and at your own risk.

FAQs

Is Liquidium custodial?

No. Liquidium is fully non-custodial. You always control your assets through your own wallets.

The protocol uses smart contracts and Threshold ECDSA cryptography to coordinate transactions, but Liquidium never takes custody of your funds or private keys.

Are ckAssets the same as wrapped tokens like wBTC?

No. ckAssets are not custodial wrapped tokens. Unlike wBTC, which relies on a trusted company holding BTC, ckAssets are protocol-level twins.

They are minted and burned by decentralized Chain Key cryptography, meaning there is no centralized issuer holding your funds.

How long does it take for BTC deposits to be confirmed?

Bitcoin deposits require 4 confirmations (approx. 40 mins), which is the industry standard to prevent blockchain reorganizations.

Once confirmed, your BTC is securely added to the pool and begins earning interest immediately.

What assets can I borrow and lend?

Supported assets and chains may evolve over time. Check the live app for the most current lending and borrowing options available.

Is Liquidium suitable for beginners?

Yes. While the underlying infrastructure is technically complex, the product is designed to make the core lending and borrowing flow straightforward for everyday users.

Beginners can lend or borrow in just a few clicks, while advanced users can leverage deep liquidity and yield strategies.