In Liquidium’s peer-to-peer lending protocol, verifying the accuracy of a transaction before signing is crucial for both borrowers and lenders. This guide walks you through how to check the transaction structure in your wallet using Partially Signed Bitcoin Transactions (PSBT) to ensure everything matches the agreed terms. In this example, we use screenshots from the Xverse mobile app.
Transaction Review
In the first screenshot (borrower view), you can see key transaction details:
Inscription: Shows a visual representation of the Ordinal being used as collateral.
Amount you will receive: Displays the amount of bitcoin the borrower will receive from the lender, after deducting any network fees.
This initial screen provides a clear summary of the transaction, allowing the borrower to verify the Ordinal they’re locking and the loan amount they will receive before proceeding. The lender can verify that the correct Ordinal is being supplied as collateral.
Note: Some wallets may have difficulty displaying the correct transfer amounts. However, they will always show the inputs and outputs of the transaction, which can also be used for verification, albeit in a more complex manner.
Transaction Structure
When creating or reviewing a loan transaction, you’ll see the following structure:
Inputs:
Input 1: Borrower Ordinal – This is the Ordinal being used as collateral by the borrower. The borrower should confirm that the Ordinal is from the correct address, while the lender can verify the transaction ID to ensure the exact location of the Ordinal.
Input 2-X: Lender UTXOs – These are the lender’s Bitcoin UTXOs, which provide the loan amount. Both the borrower and lender should verify that the correct amount of bitcoin is being used for the loan by summing up these inputs.
Outputs:
Output 1: Escrow – The borrower’s collateral is sent to an escrow address. Each escrow is a newly generated, empty address.
Output 2: Loan – The bitcoin loan amount is sent to the borrower.
Output 3: Lender's change – Any leftover bitcoin is returned to the lender as change.
Other Transaction Verifications
Liquidium uses a consistent transaction structure across its protocol. The Ordinal being used as collateral will always be the first input in any transaction. For repayment transactions, users should verify that they are repaying the correct amount and ensure they are receiving the correct Ordinal in return. Both loan initiation and repayment transactions are atomic, meaning they are processed in an all-or-nothing manner, ensuring security and consistency.
Conclusion
Before signing the PSBT, both the borrower and lender should verify the inputs and outputs to ensure everything matches the agreed loan terms. This allows users to confidently confirm the exact loan amount and the collateral being used before signing. Once verified, you can proceed with signing the transaction in your wallet, knowing that the loan terms are accurately reflected. All transactions on Liquidium are atomic, ensuring that all conditions are met or the transaction does not proceed.