Overview
RUNES, a fungible token standard on Bitcoin, can be split into smaller bundles to allow for greater flexibility in managing assets. This splitting process is particularly useful for lending, custom transactions, and liquidation scenarios.
Key Concepts
Splitting RUNES
Large bundles of RUNES can be split by sending a smaller portion of the bundle to the same address (from = to).
This creates a new output containing the specified smaller amount of RUNES, effectively splitting the original bundle into multiple parts.
Custom Bundles
By splitting RUNES into custom bundles, users can create tailored allocations of RUNES tokens that fit specific transaction or loan requirements.
Custom bundles allow for precise control over how much of the token is being used in a specific transaction.
Automatic Splitting with Liquidium
Loan Bundles
Liquidium automatically creates the desired loan bundles when users collateralize their RUNES for lending.
This automated process ensures that the borrower receives the correct amount of RUNES as collateral while handling the splitting and bundling on behalf of the user.
Liquidium splitting the runes automatically makes the process much easier because it removes additional steps for the user.
Liquidating Default Loans
In cases of loan default, marketplaces like MagicEden, OKX, and UniSat support custom bundles for liquidating collateral.
These platforms allow users to create custom bundles of RUNES for resale, further facilitating the liquidation process.
Conclusion
Splitting RUNES provides users with greater control and flexibility over their token holdings, especially in lending and liquidation scenarios. By enabling the creation of custom bundles, users can tailor their transactions to fit specific needs, with platforms like Liquidium and external marketplaces simplifying the process.