Lending · Review
ActiveLiquidium Review 2026: Borrowing Stablecoins Against Native BTC
Liquidium is a non-custodial, pool-based lending protocol that lets users supply native BTC, ETH or ICP and borrow stablecoins such as USDT on Ethereum. It has meaningful reported volume, but borrowers should understand liquidation risk and the cross-chain design.
By the DappsAtlas editorial team · Updated
DappsAtlas score
7.0/10
Good
Our verdict on Liquidium
7.0/10Liquidium suits Bitcoin holders who want stablecoin liquidity without selling, and who are comfortable with over-collateralized loans and cross-chain tooling. Its main strengths are native-asset lending without centralized wrapping, a cited Trail of Bits audit and a sizeable reported loan history. The main caveats are liquidation risk, an unverified audit listing on DefiLlama and limited published fee detail. Read the docs and the audit before borrowing.
Score breakdown
How Liquidium scores
- Security
- 6.5/10
- Ease of use
- 7.0/10
- Fees
- 5.5/10
- Features
- 7.5/10
Scores run from 0 to 10 and are based only on facts we could verify. Where information was missing we mark the score n/a rather than guess.
What is Liquidium?
Liquidium is a decentralized lending protocol aimed at people who hold native Bitcoin and want to borrow without selling it. Per DefiLlama, it is a lending protocol on ICP with about $4.4M in TVL and its own token, LIQ. The homepage describes a team with more than four years of building experience in Bitcoin lending.
The homepage reports $5.91M in total deposits, $1.5M in active loans, 136k total loans and $336M total volume. These are self-reported figures and are not independently verified here. DefiLlama shows a listing date of 2026-02-28, and the reported volume appears to include the team's earlier Bitcoin lending products.
The pitch is native assets in and out, with no centralized wrapping. Use cases include earning yield on BTC, ETH or ICP, borrowing USDT against Bitcoin, and buying other assets with borrowed funds. An SDK lets wallets and apps embed the lending flow.
How Liquidium works
Liquidium is a pool-based lending protocol. Lenders supply assets such as BTC, ETH or ICP into pools and earn interest paid by borrowers. Borrowers lock collateral, typically Bitcoin, and borrow stablecoins such as USDT on Ethereum.
The cross-chain part relies on ICP. A Dfinity executive quoted on the homepage says Liquidium builds on ICP's Chain Fusion technology so Bitcoin can be lent and borrowed directly, without centralized bridges or wrapping. DefiLlama lists the protocol on the ICP chain.
Because loans are over-collateralized, the borrower keeps exposure to the collateral's price while holding borrowed funds. If collateral value drops too far, positions are at risk of liquidation, which is standard for this type of protocol.
6 features
Key features
01
Bitcoin-backed loans
Supply BTC as collateral and borrow stablecoins such as USDT on Ethereum without selling the Bitcoin.
02
Native-asset lending
Users can lend BTC, ETH or ICP to earn interest, which the homepage describes as auto-compounded.
03
Open-ended loans
Loans are described as having no expiry, and one account works across wallets and chains.
04
No centralized wrapping
The protocol states that it avoids centralized wrapping and custodians, using native assets in and out.
05
Integration SDK
Wallets, exchanges and apps can add native Bitcoin lending flows through a single SDK integration.
06
Claimed third-party audit
The homepage cites a Trail of Bits audit and says the protocol is independently audited.
Pros and cons
What we like
- Lets Bitcoin holders borrow stablecoins without selling their BTC.
- Uses native assets without centralized wrapping, according to the project.
- Homepage cites an audit by Trail of Bits.
- Non-custodial, pool-based design with loans described as having no expiry.
- Reports meaningful lending history, with 136k total loans and $336M volume.
- SDK available for wallets, exchanges and apps to integrate.
Watch out for
- DefiLlama lists no audits, so the Trail of Bits audit claim on the homepage could not be cross-checked against the listing.
- Borrowing against BTC carries liquidation risk if collateral value falls; the homepage FAQ on this is not reproduced.
- Cross-chain design adds dependencies on ICP Chain Fusion and Ethereum, which widens the smart-contract surface.
- Fee structure beyond the displayed borrow rates is not stated.
- Some assets and features depend on availability and jurisdiction, and Solana support is only described as coming soon.
- The homepage shows two different borrow rates (0.94% APR in a calculator example, 4.30% APR for USDT), which can confuse newcomers.
Liquidium fees
Liquidium does not publish a full fee schedule on its homepage available here. It displays a current USDT borrowing rate of 4.30% APR and a sample USDC loan at 0.94% APR against 1 BTC of collateral.
A homepage FAQ covers fees, but its answer is not included publicly. Users would see live rates, any origination or protocol fees and network costs inside the app and in the docs before confirming a loan.
Is Liquidium safe?
The homepage states that Liquidium is independently audited and links to an audit by Trail of Bits. DefiLlama lists zero audits for the protocol, so the audit report itself should be read directly. The project does not describe incidents, insurance or a bug bounty.
The protocol is described as non-custodial and decentralized, but users still face smart-contract risk, liquidation risk on collateralized loans and dependence on cross-chain infrastructure. Regulatory availability can vary, and the homepage notes some assets are subject to jurisdiction.
6 steps
How to get started with Liquidium
- 1
Read the docs and the Trail of Bits audit referenced on the homepage before depositing funds.
- 2
Check that borrowing against crypto is permitted where you live, since some assets depend on jurisdiction.
- 3
Open the app and connect a compatible wallet.
- 4
Decide whether to supply assets for yield or post BTC as collateral to borrow.
- 5
If borrowing, choose a conservative loan-to-value ratio to leave room for price drops.
- 6
Monitor the position and the live borrow rate, and repay or add collateral as needed.
Who Liquidium is for
Liquidium is for Bitcoin holders who want to borrow stablecoins without selling, and for BTC, ETH or ICP holders seeking lending yield. It also targets wallet and app developers who want to embed Bitcoin lending through the SDK. It is less suitable for anyone unfamiliar with liquidation mechanics.
Liquidium FAQs
What is Liquidium?
Liquidium is a decentralized, cross-chain lending protocol for native assets. Users supply assets such as Bitcoin or ICP and borrow native assets such as USDT or USDC on Ethereum through a non-custodial, pool-based design.
How does Liquidium's cross-chain lending work?
The homepage says users supply native assets like BTC, ETH or ICP and borrow against them without centralized wrapping. DefiLlama lists the protocol on ICP, and the homepage credits ICP's Chain Fusion technology for enabling Bitcoin lending without centralized bridges.
Which assets does Liquidium support?
The homepage lists BTC, ETH and ICP as assets you can supply today, and says Solana support is coming soon. Borrowing is described as USDT on Ethereum against Bitcoin collateral, with other assets subject to availability and jurisdiction.
What are the borrow rates on Liquidium?
The homepage shows a USDT borrowing rate of 4.30% APR at the time of capture, and a sample loan at 0.94% APR. Rates in a pool-based protocol usually move with supply and demand, so check the app for the live figure.
Is Liquidium safe?
The homepage references an audit by Trail of Bits, but DefiLlama lists no audits for the protocol. Any lending protocol carries smart-contract, liquidation and cross-chain risks, so read the audit report and docs before depositing.
What happens if my collateral value drops?
Borrowers post collateral and take a loan. If the collateral value falls too far relative to the loan, positions can typically be liquidated. The homepage has an FAQ on this, but the details are not public here, so read the docs for the exact thresholds.
Compare
Liquidium alternatives
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Bitget is a centralized exchange for crypto spot and futures that also offers tokenized stocks, commodities and forex in one account, for active traders.
Internet Computer is a layer-1 network that hosts serverless apps as canisters, paid for with ICP-derived cycles and governed by the NNS DAO.
Gate US is the US-incorporated arm of the Gate crypto exchange, a centralized platform for American individuals and institutions.
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How we checked
Sources
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