Stakeholder Value Props

Liquid Finance serves multiple constituencies within the commercial real estate lending ecosystem, offering a distinct set of advantages to borrowers, and investors (depositors). By combining BTC collateral with real estate’s inherently stable cash flows, Liquid’s protocol addresses the fundamental inefficiencies in conventional lending models.

Borrowers

Borrowers benefit from a new paradigm in interest-rate flexibility. BTC appreciation can reduce borrowing costs by up to 90% over the life of the loan, a substantial departure from traditional rate structures tied to central bank policies. Loan origination becomes far more efficient, as AI-driven underwriting and on-chain validation compress the approval process from months to days. Borrowers who lock in an initial fixed rate can refinance on demand when the protocol detects that collateral ratios have improved, incurring only a negligible fee of 0.1%. This system also provides unprecedented clarity for borrowers, as all collateral ratios, loan terms, and repayment metrics are recorded on-chain, offering real-time data checks and eliminating the opaque reporting often found in conventional finance.

Investors (Depositors)

Investors who deposit capital into Liquid’s lending pools gain exposure to both commercial real estate yields and BTC’s growth trajectory. This dual stream of returns can outperform standard CRE debt, where yields commonly hover between five and eight percent. The protocol issues a unique deposit token, or dripToken, for each pool, enabling holders to redeem or trade their positions according to market conditions and personal liquidity preferences. The dripToken’s value reflects principal, accrued interest, and any BTC appreciation, allowing investors to monitor performance and risk metrics through transparent on-chain reporting. By blending stable collateral sources with a high-growth digital asset, Liquid’s lending pools can generate returns that often surpass those of conventional real estate investments while retaining core visibility into collateral balances and loan performance.