Bitcoin Staking Now Retains Liquidity via Liquidium’s sLIQ Innovation

Liquidium has launched a native liquid staking framework for Bitcoin Runes protocol tokens, marking a significant development in Bitcoin’s decentralized finance (DeFi) ecosystemLiquidium launches native liquid staking framework for Bitcoin Runes protocol tokens^[1]. The framework, built on Bitcoin’s layer-1 network, enables users to stake Liquidium’s LIQ tokens—issued under the Runes standard—while retaining native Bitcoin compatibility. Stakers receive sLIQ tokens, which represent their staked positions and allow continued participation in trading and DeFi activities. The protocol leverages Internet Computer’s chain fusion technology for wallet security, ensuring transactions occur directly on Bitcoin’s mainnet without wrapped assets or off-chain custodyLiquidium launches native liquid staking framework for Bitcoin Runes protocol tokens^[1].

The framework’s economic model allocates 30% of daily revenue from Liquidium’s lending platforms to purchase LIQ tokens, which are then redistributed to stakers as rewardsLiquidium launches native liquid staking framework for Bitcoin Runes protocol tokens^[1]. The remaining 70% is reserved for operational expenses, a structure designed to create token scarcity and generate sustainable yields. This mechanism diverges from inflation-based staking models, instead relying on protocol-generated revenue to fund rewardsLiquidium launches native liquid staking framework for Bitcoin Runes protocol tokens^[1]. Liquidium’s peer-to-peer lending protocol, LiquidiumWTF, has processed over 102,000 loans since its launch, generating $8 million in lender interest and $450 million in borrowing volumeLiquidium launches native liquid staking framework for Bitcoin Runes protocol tokens^[1].

Technically, the staking system operates through a decentralized Bitcoin wallet secured by chain fusion technology. The wallet executes predefined staking contract logic independently, with all transactions occurring on Bitcoin’s mainnetLiquidium launches native liquid staking framework for Bitcoin Runes protocol tokens^[1]. The protocol supports Ordinals, Runes, and BRC-20 tokens as collateral via partially signed Bitcoin transactions (PSBTs) and multi-signature discreet log contracts. This approach avoids the need for wrapping native assets or moving them to secondary networks, maintaining Bitcoin’s native residency throughout the staking processLiquidium launches native liquid staking framework for Bitcoin Runes protocol tokens^[1].

The sLIQ token, introduced as a liquid staking token (LST), functions under a reward-bearing model. Stakers convert LIQ tokens into sLIQ, which accrues value as protocol revenue flows into the staking pool. The exchange rate between sLIQ and LIQ increases daily, with new stakers minting at the current rate to preserve fairness$sLIQ: Introducing Bitcoin’s DeFi Liquid Staking Token^[2]. Holders retain governance rights and fee-rebate privileges equivalent to LIQ tokens, while sLIQ can be traded, used as collateral, or integrated into Bitcoin-native DeFi tools$sLIQ: Introducing Bitcoin’s DeFi Liquid Staking Token^[2]. The protocol’s open-source design permits third-party developers to expand support to additional Runes-based assetsLiquidium launches native liquid staking framework for Bitcoin Runes protocol tokens^[1].

Security and scalability are prioritized through UTXO management strategies, including efficient splitting and merging of outputs to prevent fragmentation and dust attacksBuilding Secure Liquid Staking Infrastructure for $LIQ: Insights^[5]. A 7-day cooldown period is enforced during unstaking to mitigate flash loan risks and ensure liquidity stability. The system’s reliance on Bitcoin’s UTXO model and chain fusion’s interoperability bridges reduces reliance on centralized custodians, aligning with Bitcoin’s trustless ethosBuilding Secure Liquid Staking Infrastructure for $LIQ: Insights^[5].

The launch of sLIQ represents the first Rune-based LST for a live Bitcoin DeFi protocol, expanding the toolkit for Bitcoin-native financial applications$sLIQ: Introducing Bitcoin’s DeFi Liquid Staking Token^[2]. By enabling staking without sacrificing liquidity, Liquidium addresses a key limitation of traditional staking models, potentially attracting capital to the Bitcoin DeFi sector. Analysts note that the framework’s reusability and open design could lower barriers for smaller projects seeking to integrate LSTs, fostering broader adoption within the Runes ecosystemLiquidium Prepares to Launch Open Bitcoin Staking Framework^[4].

Liquidium’s initiative aligns with growing demand for Bitcoin-based DeFi solutions, as the network evolves beyond its traditional role as a store of value. The company plans to expand its DeFi ecosystem through cross-chain lending via LiquidiumFi, slated for later 2025Liquidium launches native liquid staking framework for Bitcoin Runes protocol tokens^[1]. With Bitcoin’s DeFi sector still in its early stages, innovations like sLIQ could catalyze liquidity and yield opportunities, positioning Bitcoin as a more versatile asset in decentralized financial systemsLiquidium Launches First Bitcoin Liquid Staking Token ($sLIQ) and Revenue Share Model^[7].