Mar 23, 2023
Discover how native Ordinal lending enables a seamless experience of borrowing native BTC using digital collectibles as collateral.
Ordinal lending is an innovative concept that has emerged in the cryptocurrency lending landscape, allowing users to borrow native Bitcoin (BTC) by using their Ordinals as collateral. Ordinals, a unique form of digital collectible based on the Bitcoin blockchain, are gaining popularity among collectors and investors alike. In this article, we'll explore the world of Ordinal lending and how it differs from other lending solutions in the crypto space.
What is Ordinal Lending?
Ordinal lending is a decentralized financial (DeFi) service that lets users leverage their Ordinal Inscriptions as collateral to borrow native BTC. This lending process is similar to NFT lending on Ethereum, but with key differences that make it more accessible and secure for Bitcoin users.
In Ordinal lending, users lock their Ordinals into a lending protocol using Partially Signed Bitcoin Transactions (PSBTs) instead of smart contracts. The protocol then allows them to borrow BTC against their Ordinals, creating a seamless and efficient borrowing experience.
Why native Ordinal Lending?
Many competitors in the crypto lending space have attempted to build workarounds for borrowing against Ordinal Inscriptions, such as wrapping Ordinals onto other chains like Ethereum. However, these solutions introduce more complexity, increase the potential for errors, increase the required fees, and add unnecessary layers of risk.
Native Ordinal lending simplifies the process by keeping everything within the native Bitcoin ecosystem, reducing the points of failure and improving the overall user experience.
Liquidium: Leading the Charge in Ordinal Lending
Liquidium is the largest Stacks NFT lending protocol, and it is on the verge of launching its own Ordinal lending solution. This groundbreaking protocol will bring the benefits of Ordinal lending to the broader cryptocurrency community, offering a more efficient and secure way to borrow BTC using Ordinals as collateral.
By providing an Ordinal lending platform, Liquidium is poised to revolutionize the digital collectibles lending market and cater to the growing demand for Bitcoin-based borrowing solutions.
Ordinal lending is an exciting development in the world of cryptocurrency lending, offering a simpler and more secure way to borrow native BTC using digital collectibles as collateral. As the crypto landscape continues to evolve, Ordinal lending and protocols like Liquidium will play a crucial role in meeting the changing needs of borrowers and investors alike.
Stay ahead of the curve by exploring Ordinal lending and its potential to reshape the future of Bitcoin collateralized loans. And keep an eye on Liquidium as they continue to innovate and expand their offerings in the Stacks NFT and Ordinal lending spaces.