This guide explains how you can use your Rune tokens as collateral to borrow Bitcoin (BTC) on liquidium․wtf. Liquidium․wtf used to offer two primary methods for borrowing against Runes, but now the community has decided to depreciate the manual loans. Therefore, only Instant Loans are available now.
Instant Loans: A streamlined process where you borrow directly from automated liquidity vaults, receiving funds quickly after one confirmation.
1. Instant Loans for Runes
Instant Loans provide the fastest way to borrow BTC against your Runes. You interact with automated vaults, bypassing the need for direct lender matching and approval.
Prerequisites:
Compatible Wallet: Ensure you have a compatible wallet connected. Supported wallets include Xverse, Magic Eden Wallet, OKX, Phantom, UniSat, Leather, and Wizz Wallet.
Note on Ledger: Support for Rune loans via Ledger devices may be limited. Please check the Ledger Support article for the latest status.
Sufficient Runes: You need enough confirmed Rune tokens in your wallet to cover the collateral amount. UTXOs and UTXO Consolidation
Sufficient BTC for Fees: You need enough confirmed BTC in your wallet to cover the Bitcoin network fees for starting and repaying the loan.
Steps to Borrow Instantly:
Connect Wallet: Connect your preferred wallet to liquidium․wtf. You may need to sign one or two messages to confirm your Ordinals and payment addresses, depending on the wallet.
Navigate & Select Instant: Go to the main borrowing page and select the "Runes" tab. Toggle the switch in the upper-right corner from "Manual" to "Instant" if it's not set to "Instant" already.
Find Rune & Click Borrow: Browse the available Rune projects. Once you find the Rune you hold and wish to use as collateral, click the "Borrow" button next to it.
Select Rune Amount: Enter the amount of Runes you want to use as collateral or use the slider. The interface will display a graph showing available loan offers based on the Loan-to-Value (LTV) ratio for the amount you select.
Review Terms & Submit: The modal will show the best available loan terms based on the amount you selected, including the BTC amount you'll receive, the interest rate, loan duration, and LTV. Review these details carefully. If you're satisfied, click "Submit".
Confirm in Wallet: Your wallet will prompt you to sign the transaction. Confirm the transaction details in your wallet.
Receive Funds: Once the Bitcoin transaction receives one confirmation on the blockchain (typically around 10 minutes), the loan starts, and the borrowed BTC will be sent to your wallet. The loan will appear under the "Borrowing" tab on your Portfolio page.
Fees for Instant Rune Borrowing:
Activation Fee: An activation fee is deducted from the principal loan amount when the loan starts. The fee is calculated as the higher of:
0.75% of the principal loan amount, OR
A minimum fee of 1000 sats.
Network Fees: The borrower pays the Bitcoin network fees (gas fees) for both starting the loan and repaying the loan. These fees vary based on network congestion. Transaction Time and Fees
For details on potential platform fee discounts based on token holdings, see Tiered Platform Fee Discounts and Bonuses for Token Holders.
Managing Instant Loans:
You can track your active Instant Rune loans, including remaining duration and repayment amount, on your Portfolio page.
2. Repaying Rune Loans (Instant)
Repaying your loan on time is crucial to get your Rune collateral back and avoid default.
Steps to Repay:
Go to Portfolio: Navigate to your Portfolio page and find the active loan under the "Borrowing" tab.
Click Repay: Click the "Repay" button for the loan you wish to settle.
Select Fee Rate: Choose your desired network fee rate for the repayment transaction. Ensure you have enough confirmed BTC in your wallet to cover the repayment amount (principal + interest) plus the network fee.
Confirm & Sign: Click "Repay" in the modal, then confirm and sign the transaction in your wallet.
Wait for Confirmation: The repayment needs to be confirmed on the Bitcoin blockchain.
Collateral Returned Automatically: Once the repayment transaction is confirmed, your Rune collateral is automatically released from the escrow and sent back to your wallet. No manual "Unlock" step is required for Rune loans.
Important Notes on Repayment:
Confirmed BTC: Generally, you need confirmed BTC for repayment. However, BTC received from a liquidium․wtf loan might be usable for repayment even while unconfirmed, thanks to recent updates. External unconfirmed funds cannot be used. Check Errors explained or Common Issues for details.
Speeding Up: If your repayment transaction is stuck due to low fees, you can use the Child-Pays-For-Parent (CPFP) feature.
Timeliness: Initiate the repayment before the loan timer expires. Even if the confirmation happens slightly after expiry, initiating it beforehand counts as timely repayment.
3. Defaults & Other Considerations
Default: If you don't repay the loan before expiry, the loan defaults. You keep the borrowed BTC, but the lender receives your Rune collateral.
Transaction Confirmation: Monitor transaction status on a block explorer like mempool.space. If fees are too low during congestion, transactions can be delayed.
Minimum Loan Size: The minimum loan amount for Rune loans is currently 0.001 BTC (subject to change). Check the FAQ for current minimums.
Airdrops: If Runes held as collateral receive an airdrop during the loan, the airdrop goes into the escrow. It will be automatically returned to the borrower upon successful repayment or can be claimed by the lender after a default.