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sLIQUIDIUM•Token ($sLIQ): Liquid Staking Framework for Bitcoin-Native DeFi

Updated over 2 months ago

$sLIQ – Quick Overview

$sLIQ is Liquidium’s liquid staking token built on Bitcoin Runes.

By staking $LIQUIDIUM•Token($LIQ) users receive sLIQUIDIUM•Token ($sLIQ), which represents their staked position and grows in number of tokens as staking rewards accrue.

This lets holders earn protocol revenue in $LIQ tokens while keeping their tokens liquid, transferable, and usable across the Liquidium ecosystem.

It’s the first Rune-based LST (Liquid Staking Token) deployed by a live Bitcoin DeFi protocol — expanding the Bitcoin-native toolkit without bridges or wrapped assets.


$sLIQ – Overview

Staking traditionally involves locking tokens for yield — at the cost of flexibility.

Liquid Staking Tokens (LSTs) solve this by issuing a tradable token that represents the staked position and auto-accumulates rewards.

$sLIQ follows this reward-bearing model:

  • Stake $LIQ → receive $sLIQ

  • Protocol revenue (30% of fees) is used to buy back $LIQ daily and add to the staking pool

  • The exchange rate between $sLIQ and $LIQ increases over time

  • Late stakers mint at the updated rate — ensuring fairness

  • $sLIQ remains fully tradable, transferable, and usable as collateral


🔹 $sLIQ – Key Facts

Property

Details

Token

$sLIQUIDIUM•TOKEN

Source Token

$LIQUIDIUM•TOKEN

Issuance Ratio

1:1 at launch, then dynamic (reward-bearing)

Rewards

30% of Liquidium fees → used to buy back $LIQ on a daily via the open market.

Liquidity

Tradable on $sLIQ•TOKEN/BTC pairs

Collateral Usage

Usable on LiquidiumWTF native Bitcoin L1 P2P lending platform

Governance

Carries same fee rebates as $LIQ and more voting power


$sLIQ – Mechanics

1. Stake

Deposit $LIQ → mint $sLIQU 1:1 upon launch. Then dynamic (reward-bearing)

2. Rewards Flow

Each day, 30% of protocol fees (LiquidiumWTF and LiquidiumFi) are used to buy back $LIQ from the open market, which is deposited into the staking contract.

3. Rising Exchange Rate

As the contract’s pool of $LIQ grows and $sLIQ’s supply stays fixed, the numeric value of each $sLIQ rises.

e.g., If the pool grows 2% → next day 1 $sLIQ = 1.02 $LIQ.

4. New Stakers

New participants mint $sLIQ at the current rate, ensuring early stakers aren’t diluted.

5. Unstake

After a 7-day cooldown, redeem $sLIQ for your $LIQ + all accumulated rewards.


$sLIQ – Benefits

Benefit

What It Means

Passive Yield

Earn protocol revenue without managing claims or spending Bitcoin transaction fees.

Liquidity

$sLIQ is tradable on BTC pairs and will be integrated within future BTC-Fi tools

Collateral Utility

Use $sLIQ as collateral on LiquidiumWTF’s native Bitcoin L1 P2P lending platform

Equal Governance & Rebates

Each $sLIQ carries the same voting power and fee‑rebate status as an equivalent amount of $LIQ.

Bitcoin-Native

Runs on Layer 1 using Runes and PSBTs — no bridges, no wrapped assets


🔹 $sLIQ – Important Links

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