Liqwid Finance Shatters Barriers: Native Bitcoin Lending Launches on Cardano
DeFi just got a seismic upgrade—Liqwid’s protocol now lets you collateralize Bitcoin natively on Cardano. No wrapped tokens, no middlemen. Just pure BTC working for you.
How it works: Cardano’s extended UTXO model finally flexes its muscles, enabling direct BTC loans without bridging risks. Smart contracts handle the heavy lifting while users keep custody—take that, CeFi dinosaurs.
The fine print: Early APYs are sitting at 8-12% for lenders (yes, better than your bank’s ‘high-yield’ savings account). Borrowers pay 15% upfront with 110% collateralization—standard DeFi rules for dodging liquidations.
Why it matters: This isn’t just cross-chain—it’s chain-agnostic money Lego building. Cardano’s math-backed security meets Bitcoin’s liquidity, creating a Frankenstein even Wall Street can’t ignore (though they’ll still call it ‘niche’).
Bottom line: Liqwid didn’t bridge Bitcoin to Cardano—they built a damn submarine. Now watch TradFi institutions scramble to copy the blueprint while pretending they invented it.
Bridging Bitcoin to Cardano—Without Wrapping
Traditionally, when users wanted to use Bitcoin in DeFi applications, they were forced to convert BTC into a “wrapped” version, such as WBTC on Ethereum. This method involved custodians and third-party risks, often compromising decentralization and security.
Liqwid’s approach changes that. The protocol is working to bring Bitcoin onto Cardano as a Cardano Native Token (CNT) through a BTC-to-CNT bridge. This eliminates the need for wrapping or asset conversion, enabling users to retain full custody of their Bitcoin while still being able to supply it as collateral or use it in lending markets.
According to Liqwid Labs, this integration will be made possible via a dedicated BTC onboarding page. Users will be able to connect their Bitcoin wallets, bridge BTC into the cardano network, and access lending and borrowing options—all from one simple interface.
Technical Foundation Ready for BTC Integration
Liqwid has already prepared its infrastructure to support native Bitcoin lending on Cardano. The platform includes secure price oracles for Bitcoin, a modular framework for listing new markets, and robust risk assessment models for collateralized assets.
This infrastructure, combined with Liqwid’s on-chain governance system, allows the Cardano DeFi community to quickly approve and implement the addition of new tokens, including BTC. Once a secure and functional BTC-to-CNT bridge goes live, the integration is expected to roll out smoothly.
Importantly, Liqwid has confirmed that ituntil one proves secure and is live on the network. This careful approach emphasizes user safety and asset integrity.
Bitcoin Lending Without Compromise
Once Bitcoin is available as a Cardano Native Token, users will be able to supply it as collateral on Liqwid and borrow stablecoins like USDA, USDM, or DJED. This setup enables users to unlock liquidity without selling their BTC, a strategy favored by long-term holders who want capital efficiency without giving up exposure to potential BTC price appreciation.
Because this integration does not involve wrapping or custody with third parties, it maintains the original security, immutability, and decentralization of the Bitcoin network. This makes it ideal for users who want access to DeFi without compromising on core crypto values.
Ordinals Technology Makes It Possible p approach.
Expanding Cross-Chain Strategy—XRP Next?
Cardano’s ambition doesn’t stop with Bitcoin. Charles Hoskinson, co-founder of Cardano, has recently hinted at plans to deepen interoperability with XRP, another major crypto asset.
Projects in development include DeFi tools that integrate XRP, stableco in collaborations (such as Ripple’s RLUSD), and initiatives like the Glacier Airdrop. These moves signal Cardano’s broader strategy to create a seamless multi-chain DeFi environment where users can access leading assets across networks—all without centralized intermediaries.
A New Era for Cardano DeFi
Liqwid’s integration of Bitcoin could be a turning point for both Cardano and the broader DeFi space. If successful, it will be one of the first implementations of BTC in DeFi without wrappers, custody risks, or trade-offs.
For users, it means they can access lending opportunities and liquidity while holding native BTC. For the ecosystem, it’s a showcase of Cardano’s capacity to lead the next generation of decentralized finance—one that prioritizes interoperability, user control, and long-term sustainability.
Final Thoughts
As the DeFi space matures, the demand for seamless cross-chain experiences is growing. Liqwid’s Bitcoin integration marks a bold step toward a future where assets like BTC can be used across multiple networks without sacrificing decentralization or security.
With the infrastructure ready and the strategy in place, Cardano is positioning itself as a serious player in the next phase of crypto finance. If the BTC-to-CNT bridge proves successful, it could open the door to a wave of new users and developers looking to explore the possibilities of truly decentralized, multi-chain finance.
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