Liquidium

Cross-Chain Flow

How native assets move through the protocol via Chain Key technology

Chain Key Technology

ICP's Chain Key allows canisters to:

  • Hold assets on other blockchains (Bitcoin, Ethereum)
  • Sign transactions using threshold cryptography
  • Verify transactions from other chains

This eliminates the need for:

  • Centralized bridges
  • Trusted intermediaries
  • Manual wrapped-token management

ckAsset Model

Liquidium pools use chain-key assets on ICP. You can enter a supported pool through either the native blockchain or the corresponding ckAsset ledger on ICP, depending on the route shown in the app. Native ICP stays on the ICP ledger and does not need a ckAsset conversion.

Native Asset

Chain Key Asset

Backing

BTC

ckBTC

1:1 backed by L1 BTC

ETH

ckETH

1:1 backed by L1 ETH

USDT

ckUSDT

1:1 backed by L1 Ethereum USDT

USDC

ckUSDC

1:1 backed by L1 Ethereum USDC

ICP

ICP

Native ICP ledger asset

Native-chain route: Send a supported native asset to the native-chain deposit address shown in the app. Chain Key infrastructure mints the corresponding ckAsset before the pool processes it.

ICP ckAsset route: If you already hold a supported ckAsset, send it directly over ICP to the ICRC-1 deposit address shown in the app. No additional ckAsset minting is required.

Deposit Routes (Native or ckAsset → Pool)

What you do

  1. Select the asset and deposit route shown in the app
  2. For a native-chain deposit, send the native asset to the Bitcoin or Ethereum address shown
  3. For a direct ckAsset deposit, enable ICP assets and send the ckAsset to the ICRC-1 address shown
  4. After the transfer confirms and Liquidium processes it, the funds appear in your profile
The destination is asset- and network-specific. Never send native ETH to a ckETH address on ICP or ckETH to an Ethereum address.

Withdrawal Flow (Pool → ckAsset → Native)

What you do

  1. Request a withdrawal to your Bitcoin address
  2. Lending canister validates health factor
  3. Pool processes withdrawal (standard or boosted)
  4. Receive native BTC

Borrow Flow (Cross-Chain)

You can supply BTC and borrow USDC across chains:

What you do

  1. Supply BTC as collateral
  2. Request to borrow USDT to your Ethereum address
  3. Protocol validates collateral covers the loan
  4. Receive USDT on Ethereum

Repayment Flow

Confirmation Requirements

Each chain has different finality characteristics:

Chain

Confirmations

Approximate Time

Bitcoin

4

~40 minutes

Ethereum

64

~13 minutes

ICP

Ledger finality

Usually seconds, then Liquidium finalization

The protocol waits for sufficient confirmations or ledger finality before crediting funds.

Cross-Chain Architecture Benefits

1. Native Asset UX

You can deposit and receive supported native assets without manually using a bridge. If you already hold supported ckAssets, use the direct ICP route shown in the app.

You do not need to understand the internal conversion process, and you do not need to convert ckAssets back to native assets before using Liquidium.

2. Unified Liquidity

All supported routes feed the same Liquidium pools:

  • BTC from a Bitcoin wallet or ckBTC over ICP
  • ETH from an Ethereum wallet or ckETH over ICP
  • USDC/USDT from Ethereum or their supported ckAsset ledgers on ICP
  • ICP from a supported principal, ICRC-1 account, or Account ID
  • Single health factor across all positions

3. Fast Liquidations

ICP's sub-second finality enables:

  • 15-second liquidation cycles
  • Quick response to price movements
  • Protocol solvency protection

Compare to:

  • Bitcoin: 10-40 minutes per transaction
  • Ethereum: 12+ seconds per block

4. Decentralized Security

Chain Key provides:

  • No trusted intermediaries
  • Threshold cryptography (many nodes)
  • Cryptographic proofs of asset backing

Deployed Infrastructure

The protocol uses ICP's production Chain Key and native ledger infrastructure:

Component

Purpose

ckBTC Minter

Mint/burn ckBTC ↔ BTC

ckETH Minter

Mint/burn ckETH/ckERC-20 ↔ ETH/ERC-20

ckBTC Ledger

ICRC-1 ledger for ckBTC

ckETH Ledger

ICRC-1 ledger for ckETH

ICP Ledger

Native ICP ledger used by the ICP Pool

ICP Pool Canister

Native ICP liquidity, deposits, repayments, borrows, and withdrawals

Learn more about ICP's Chain Fusion technology at internetcomputer.org/chainfusion.