The Liquidium Foundation has released a liquid staking framework for Rune-based tokens operating on Bitcoin’s layer-1 network.
The protocol enables users to stake tokens while maintaining their native Bitcoin format, using Internet Computer’s chain fusion technology for wallet security.
The framework initially supports staking of Liquidium’s LIQ tokens, which follow the Runes standard developed for Bitcoin.
Users receive liquid sLIQ tokens representing their staked positions, allowing them to continue trading while earning rewards. The open-source protocol design permits third-party developers to integrate additional Runes-based assets.
Staking rewards derive from protocol revenue rather than token inflation. Liquidium allocates 30% of daily revenue from its lending platforms to purchase LIQ tokens, which are then redistributed to stakers.
The company reserves 70% of revenue for operational expenses. This mechanism aims to create token scarcity while generating sustainable yields.
The Runes protocol, introduced as a Bitcoin-native token standard, enables the creation of fungible tokens directly on the BTC blockchain.
Technical implementation
The staking system operates through a decentralized Bitcoin wallet secured by Internet Computer’s chain fusion technology.
The wallet operates independently, executing only predefined staking contract logic without requiring third-party control. All transactions occur directly on Bitcoin’s mainnet without requiring wrapped assets or off-chain custody.
Robin Obermaier, Liquidium’s co-founder and CEO, stated the framework connects to the company’s existing products.
LiquidiumWTF, the platform’s peer-to-peer lending protocol, generates revenue through Bitcoin-collateralized loans. LiquidiumFi, scheduled to launch later this year, will enable cross-chain lending across Bitcoin, Ethereum, and Solana networks.
The staking framework integrates with Liquidium’s existing operations on Bitcoin Layer 1. Since launch, the platform has processed over 102,000 loans, generating $8 million in lender interest and facilitating $450 million in borrowing volume.
The protocol supports Ordinals, Runes, and BRC-20 tokens as collateral through Partially Signed Bitcoin Transactions (PSBTs) and multi-signature Discreet Log Contracts for escrow.
Traditional implementations often require wrapping native assets or moving them to secondary networks. Liquidium’s approach maintains Bitcoin network residency throughout the staking process.
The company plans to expand its DeFi ecosystem through the staking framework while maintaining its focus on native Bitcoin operations.