Product User Journey
LiquidSat is built for both BTC holders and stablecoin lenders. This guide walks you through how each participant interacts with the protocol — from setup to settlement — across both Peer-to-Pool and Peer-to-Peer models.
Whether you want to borrow against your Bitcoin or earn yield on your stablecoins, LiquidSat ensures a smooth, self-custodial experience at every step.
🧰 1️⃣ Setup
Before you start, prepare two wallets:
BTC Collateral
Bitcoin
Xverse / UniSat (supports native script signing)
Stablecoin Interaction
Any supported EVM network
MetaMask / Rabby / OKX Wallet
Obtain Test Tokens
(For testnet users only)
Bitcoin Testnet BTC → Faucet
EVM Testnet Stablecoins (USDT/USDC) → Network-specific faucets
You’ll need small amounts of gas tokens (ETH, CORE, or equivalent) to cover testnet transactions.
⚡ 2️⃣ Borrowing Journey (BTC Holders)
Step 1 — Connect Wallets
Connect both your Bitcoin and EVM wallets to the LiquidSat dApp. You’ll be prompted to verify wallet ownership and enable testnet mode if applicable.
Step 2 — Choose Lending Mode
Select between:
Peer-to-Pool: Instant borrowing from available liquidity pools
Peer-to-Peer: Custom loan offers (choose your rate, duration, and collateral ratio)
Step 3 — Configure Loan Details
Enter:
BTC amount to lock
Duration (e.g., 7 / 30 / 60 / 90 days)
Desired stablecoin amount
Interest rate (auto-filled in pool mode, custom in P2P)
Step 4 — Lock Your BTC Collateral
LiquidSat generates a Bitcoin Script Lock address specific to your loan. You sign and send BTC to this address — ensuring full self-custody. Once confirmed, the protocol issues a proof of lock.
Step 5 — Receive Stablecoins
Upon lock verification, the EVM contract releases stablecoins to your connected wallet. You can now freely use or reinvest these stablecoins.
Step 6 — Repay and Unlock BTC
Before expiry, repay principal + interest in stablecoins. Repayment triggers on-chain verification → BTC automatically unlocks.
Step 7 — In Case of Default or Expiry
If you don’t repay by the due date, or collateral value falls below the threshold:
Pre-signed transactions automatically release BTC to the lender or pool.
Settlement is deterministic — no manual control or admin interference.
✅ Result: You access liquidity without selling BTC and regain collateral trustlessly upon repayment.
💸 3️⃣ Lending Journey (Stablecoin Lenders)
Step 1 — Connect EVM Wallet
Connect your EVM wallet to the dApp. Select the chain and lending mode you wish to participate in.
Step 2 — Choose Lending Type
Peer-to-Pool: Deposit stablecoins into available pools (fixed APR & duration).
Peer-to-Peer: Review borrower requests and accept offers matching your yield strategy.
Step 3 — Deposit or Fund
In pool mode, deposit stablecoins into a specific maturity pool (e.g., 30-day 10% APR).
In P2P mode, fund the borrower’s offer directly by approving stablecoin transfer.
Step 4 — Earn Yield
Your stablecoins are allocated automatically to verified BTC-backed loans. You start earning interest immediately — returns are distributed at loan maturity or on borrower repayment.
Step 5 — Withdraw or Roll Over
When the loan or pool matures:
Withdraw stablecoins + interest, or
Rollover into a new pool for continuous yield.
If a borrower defaults, BTC collateral is distributed to the pool or lender per pre-signed settlement rules.
✅ Result: You earn predictable yield, backed by verifiable BTC collateral — with no custodial exposure.
🧮 4️⃣ Example Flows
Borrower
P2Pool
Lock BTC
BTC
Bitcoin
Borrower
P2Pool
Receive stablecoins
USDT/USDC
EVM
Lender
P2Pool
Deposit stablecoins
USDT/USDC
EVM
Protocol
—
Verify BTC lock & disburse funds
—
Dual
Borrower
P2Pool/P2P
Repay + interest
Stablecoins
EVM
Protocol
—
Release BTC or settle
BTC
Bitcoin
🧠 5️⃣ User Safeguards
No Custody: Only the borrower controls BTC private keys until pre-signed logic executes.
Transparent Risk: Collateral ratios and loan states are visible on-chain.
Deterministic Settlement: Repayment and liquidation paths are algorithmically enforced.
Multi-Network Support: Choose your preferred EVM for borrowing or lending.
Unified Dashboard: Track all active loans, pool contributions, and collateral locks in one view.
🪙 6️⃣ Optional: Testnet Incentives (For Early Users)
Earn LiquidSat Points for testing borrowing, lending, and reporting feedback.
Points reflect early contribution to protocol development.
Top participants are featured on the testnet leaderboard.
🚀 Quick Summary
Borrow instantly using BTC as collateral
Earn fixed or custom yield backed by BTC
Retain BTC exposure & ownership
Transparent, verified collateral
No bridges, no wrapping
No counterparty trust
Flexible repayment
Passive, predictable income
LiquidSat simplifies the Bitcoin DeFi experience — borrow, lend, and earn securely with your own keys.
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