Bitcoin Staking Maintains Liquidity Through Liquidium’s sLIQ Breakthrough

Liquidium has introduced a native liquid staking system for

protocol tokens, representing a major advancement for Bitcoin’s decentralized finance (DeFi) landscape Liquidium launches native liquid staking framework for Bitcoin Runes protocol tokens [ 1 ]. Built directly on Bitcoin’s layer-1, this framework allows users to stake LIQ tokens—created under the Runes protocol—while maintaining full compatibility with native Bitcoin. Those who stake receive sLIQ tokens, which act as proof of their staked assets and enable ongoing participation in trading and DeFi. The protocol utilizes Internet Computer’s chain fusion technology to secure wallets, ensuring all transactions are executed on Bitcoin’s mainnet, eliminating the need for wrapped tokens or off-chain custody Liquidium launches native liquid staking framework for Bitcoin Runes protocol tokens [ 1 ].

Under this model, 30% of daily revenue from Liquidium’s lending services is used to buy back LIQ tokens, which are then distributed as rewards to stakers Liquidium launches native liquid staking framework for Bitcoin Runes protocol tokens [ 1 ]. The other 70% is allocated for operational costs, a structure intended to drive token scarcity and offer sustainable returns. Unlike inflationary staking models, this system funds rewards through actual protocol earnings Liquidium launches native liquid staking framework for Bitcoin Runes protocol tokens [ 1 ]. Since its inception, Liquidium’s peer-to-peer lending platform, LiquidiumWTF, has facilitated over 102,000 loans, generating $8 million in lender interest and $450 million in total borrowing Liquidium launches native liquid staking framework for Bitcoin Runes protocol tokens [ 1 ].

From a technical perspective, staking is managed via a decentralized Bitcoin wallet protected by chain fusion technology. This wallet autonomously executes staking contract logic, with all activity taking place directly on Bitcoin’s mainnet Liquidium launches native liquid staking framework for Bitcoin Runes protocol tokens [ 1 ]. The protocol accommodates Ordinals, Runes, and BRC-20 tokens as collateral using partially signed Bitcoin transactions (PSBTs) and multi-signature discreet log contracts. This design avoids wrapping assets or transferring them to other networks, ensuring assets remain natively on Bitcoin throughout staking Liquidium launches native liquid staking framework for Bitcoin Runes protocol tokens [ 1 ].

The sLIQ token, serving as a liquid staking token (LST), operates on a reward-accruing basis. When users stake LIQ, they receive sLIQ, which appreciates in value as protocol revenue is added to the staking pool. The conversion rate between sLIQ and LIQ rises daily, and new stakers mint sLIQ at the prevailing rate to ensure fairness $sLIQ: Introducing Bitcoin’s DeFi Liquid Staking Token [ 2 ]. Holders maintain governance and fee-rebate rights equivalent to LIQ, and sLIQ can be traded, used as collateral, or integrated with Bitcoin-native DeFi applications $sLIQ: Introducing Bitcoin’s DeFi Liquid Staking Token [ 2 ]. The protocol’s open-source nature allows external developers to add support for more Runes-based assets Liquidium launches native liquid staking framework for Bitcoin Runes protocol tokens [ 1 ].

Security and scalability are addressed through UTXO management, including optimized splitting and merging of outputs to minimize fragmentation and prevent dust attacks Building Secure Liquid Staking Infrastructure for $LIQ: Insights [ 5 ]. A mandatory 7-day cooldown is enforced for unstaking, reducing flash loan risks and supporting liquidity stability. By leveraging Bitcoin’s UTXO model and chain fusion’s interoperability, the system minimizes dependence on centralized custodians, staying true to Bitcoin’s trustless principles Building Secure Liquid Staking Infrastructure for $LIQ: Insights [ 5 ].

The debut of sLIQ marks the first Rune-based LST available for a live Bitcoin DeFi protocol, broadening the range of tools for Bitcoin-native financial products $sLIQ: Introducing Bitcoin’s DeFi Liquid Staking Token [ 2 ]. By allowing staking without locking up liquidity, Liquidium addresses a major drawback of conventional staking, potentially drawing more capital into Bitcoin DeFi. Observers suggest that the framework’s modular and open design could make it easier for smaller projects to adopt LSTs, encouraging wider use within the Runes ecosystem Liquidium Prepares to Launch Open Bitcoin Staking Framework [ 4 ].

Liquidium’s project responds to the rising interest in DeFi solutions built on Bitcoin, as the network expands beyond its traditional role as a value store. The company aims to grow its DeFi offerings with cross-chain lending through LiquidiumFi, expected in late 2025 Liquidium launches native liquid staking framework for Bitcoin Runes protocol tokens [ 1 ]. As Bitcoin’s DeFi sector is still emerging, innovations like sLIQ may drive new liquidity and yield opportunities, helping position Bitcoin as a more dynamic asset within decentralized finance Liquidium Launches First Bitcoin Liquid Staking Token ($sLIQ) and Revenue Share Model [ 7 ].