Chill Bitcoin Cafe #23

ZhaoweiK avatar
Builder Kim
@ZhaoweiKAug 9, 2025

The Spaces brought together Kim (host, Omnity/Reswap), Jay (Liquidium co‑founder/CMO), Hussein (Reswap PM), and Pima (BMA) to discuss the state of Bitcoin L1 DeFi around Runes and Ordinals, upcoming Hong Kong events, and product roadmaps. Jay outlined Liquidium.wtf’s growth as a leading BTC L1 lending/borrowing protocol, its Liquidium Pi cross‑chain lending product (e.g., borrowing USDT against BTC), the Liquidium Foundation’s LICK governance token, and an audited liquid staking framework with sLICK powered by daily revenue buybacks (30%). Hussein shared Omnity Hub surpassing $200M TVL and Reswap’s open‑source AMM with a new Runes‑to‑Runes atomic swap path. Pima detailed BMA’s Bitcoin‑backed stablecoin plans and a dual retail/institution strategy with compliance and diversified yield strategies. The group emphasized user retention over pure points farming, the liquidity dilemma and Set Terminal integrations, strong Chinese community participation, and collaboration possibilities (e.g., stablecoin borrowing on Liquidium). They also touched on market catalysts (Elon’s Coinbase repost, ETH at 4K) and previewed Runes Asia (Aug 27), Bitcoin Asia (Aug 28), and BTC Summit (Aug 29) in Hong Kong.

Trobican Cafe Episode 23 — Full Session Notes

Context and Agenda

  • Weekly Twitter Space focused on Bitcoin DeFi, Ordinals/Runes, and cross-chain infra; Episode 23.
  • Pre-Hong Kong event circuit planning and collaboration touchpoints:
    • Rinse Asia on Aug 27 (HK)
    • Bitcoin Asia on Aug 28 (HK)
    • Bitcoin Summit on Aug 29 (HK)
  • Guests/participants discussed product roadmaps, ecosystem liquidity, user growth/retention, and retail vs institutional adoption.

Participants and Roles

  • Kim (host; organizer for Rinse Asia; involved with Omnity/Reswap initiatives)
  • Jay (co-founder & CMO, Liquidium)
  • Pima (BMA/Bima; building a Bitcoin-backed stablecoin, USBD)
  • Additional baristas/community: references to Hussein and Peach; Fonzi was expected but did not speak on-mic. Mentions of Said and Eric attending Hong Kong events.

Liquidium: What’s Live and What’s Next (Jay)

  • Core protocol (Liquidium WTF): described as the largest lending and borrowing protocol on Bitcoin L1.
    • Collateral types: Runes and other Bitcoin-native assets (e.g., BRC-20s), with instant-loan features for Runes.
    • Cumulative metrics cited: >$0.5B in volume, >$9M interest paid to lenders, >100k loans originations on Bitcoin L1.
  • New cross-chain product (Liquidium Fi):
    • Cross-chain lending experience (e.g., borrow USDT on Ethereum against BTC collateral) via a simple, seamless UX.
    • Targeted for later this year.
  • Liquidium Foundation and governance token (LIQ):
    • LIQ currently governs protocol decisions; plan to introduce sLIQ (liquid-staked LIQ).
    • sLIQ buybacks funded by revenue: 30% of protocol revenue directed to daily buybacks to support staking economics.
  • Open-source Runes liquid staking framework:
    • In audit; to be open-sourced, enabling other Runes projects with revenue to issue their own liquid staking tokens on similar rails.
    • To be showcased at Rinse Asia.
  • Platform integrations roadmap:
    • Upcoming APIs for lending/borrowing to enable direct wallet integrations and broader developer adoption.

Strategy, Growth, and Community: Lessons from Liquidium

  • Iterative strategy: growth driven by shipping, partner integration, and adapting to new opportunities rather than rigid pre-set plans.
  • Positioning: early and credible presence in the Ordinals/Runes space; serving multiple marketplaces; moving cross-chain.
  • Community focus: continuous dialogue with users; building the features they want; credibility from consistent delivery.
  • Acquisition and retention:
    • Points/airdrops can help acquisition but are insufficient alone.
    • Retention is harder than onboarding; requires product-market fit, utility, and strong UX to keep users long-term.

BMA/Bima: Bitcoin-Backed Stablecoin and Dual-Track GTM (Pima)

  • Product vision: USBD, a Bitcoin-backed stablecoin designed for both retail and institutional users.
  • Retail track: CDP model—borrow against BTC and deploy into on-chain/CeFi/hedge-fund strategies; aim to offer multiple, evolving yield strategies and simple UX.
  • Institutional track:
    • Legal/compliance work nearing completion; announcements targeted around Hong Kong.
    • Institutions scrutinize every detail; prefer low-risk exposure to BTC principal (e.g., repay/liability in liquid stables like USDC/USDT/USBD).
    • Access to on-chain strategies likely gated/limited vs retail; emphasis on risk controls and verification mechanisms.
    • Insurance/mitigation contemplated to reduce adverse outcomes in liquidation scenarios.
  • Collaboration interest: sees strong fit with Liquidium Fi (e.g., enabling USBD along similar lines as USDT). Open to deeper integration talks post-announce.

Omnity/Reswap (RE/Reswap) Updates and Vision (Kim + team)

  • Omnity Hub milestone: TVL surpassed ~$200M; characterized as among the largest cross-chain TVLs in crypto and a major hub for Runes/Bitcoin DeFi liquidity.
  • Reswap (Bitcoin L1 AMM focus):
    • Positioning: fully open-source and audited AMM, designed without off-chain components, hidden matching engines, or multisig custodians; operations are controlled by on-chain contracts.
    • New “Runes-to-Runes” feature launched mid-July:
      • Any Runes ↔ any Runes via a single atomic transaction by routing Rune→BTC→Rune under the hood.
      • Time and fee efficiency; packaged to minimize slippage exposure and MEV-like extraction (single atomic execution).
      • Early liquidity partner: Liquidium seeded LIQ pools, allowing users to swap various Runes (e.g., DOC) directly to LIQ in one click.
    • Aggregation and integrations:
      • In talks to integrate Reswap with a trading/aggregation venue (referred to as Set/Sat Terminal) for deeper pooled liquidity and lower fees.
      • Goal: make Reswap accessible via popular aggregators and marketplaces alongside Magic Eden and others, improving discovery and routing.
  • Ecosystem outreach and liquidity plan:
    • Co-hosting Rinse Asia with RuneCC; leveraging deep links with the Chinese OrdFi community (noted as highly active) to bring users and LP capital to Bitcoin DeFi.
    • Direct engagements with Chinese community leaders for feature requests, UX feedback, and LP seeding commitments.
    • Expectation: more depth and volume by late August as integrations go live and community seeding accelerates.

Market Demand: Runes vs Ordinals in Lending (Liquidium data point)

  • Utilization split is market-dependent, generally around 60/40 to 50/50 between Ordinals and Runes.
  • Runes collateral is often easier to use for smaller-ticket loans (instant loans; granular sizing), whereas Ordinals require whole-asset collateralization, which is less flexible.

Liquidity Fragmentation and Practical Advice

  • Challenge: classic bootstrap dilemma—limited users depress LP incentives; limited LP depth depresses user demand.
  • Partial solutions discussed:
    • Use multiple venues and aggregators; don’t rely solely on a single dominant swap.
    • Smaller/newer protocols should broadcast their differentiated value and lower fees more loudly to be discovered.
    • Pool liquidity via integration (e.g., with terminal/aggregator partners) and coordinated community LP seeding.
    • Regional amplification: near-term focus on mobilizing Chinese OrdFi participants to jumpstart depth on Bitcoin-native rails.

User Acquisition vs. Retention: Shared Perspectives

  • Jay (Liquidium): retention > acquisition difficulty; points are tools, but durable retention comes from useful products and strong UX.
  • Pima (BMA/Bima): early incentives are fine for acquisition, but sustainability demands utility, governance alignment, and revenue sharing that rewards meaningful participation (not just passive token holding).

Collaboration Thread: Liquidium × BMA/Bima

  • Mutual interest in enabling Bitcoin-collateralized stablecoin borrowing within Liquidium’s cross-chain product set.
  • Concrete step: Liquidium to ship lending/borrowing APIs for wallet integrations; both sides open to explore USBD enablement post-announcements.

Community and Cultural Signals

  • Social catalysts: Elon’s repost of a Coinbase item triggered meme/runes activity; speculative talk about X potentially supporting Ordinals/Runes surfaced in the chat, framed as marketing momentum rather than a firm roadmap.
  • Macro vibes: references to pro-crypto US policy signals, ETH near $4k, and a broadening bullish tone into the HK event week.

Event Logistics and Attendance

  • Key dates in Hong Kong:
    • Aug 27: Rinse Asia (core builder + community day; “alpha” drops expected)
    • Aug 28: Bitcoin Asia
    • Aug 29: Bitcoin Summit
  • Attendance: Jay (Liquidium) confirmed; mentions of Said and Eric as present or arriving in HK. Pima expects to be present across multiple stops (Japan/HK). Fonzi had overlapping calls during this session.

Notable Quotes and Metrics

  • Liquidium: “> $0.5B volume; > $9M lender interest; > 100k loans on Bitcoin Layer 1.”
  • sLIQ economics: “30% of protocol revenue goes to daily buybacks.”
  • Omnity Hub: “> $200M TVL; among the largest cross-chain hubs in crypto.”
  • Utilization split: “Runes vs Ordinals around 60/40 or 50/50, depending on market conditions.”

Open Questions Highlighted by the Group

  • What critical missing products in the Runes stack would most unlock daily usage? Jay pointed to the need for a go-to, deep-liquidity, user-friendly swap experience beyond the current default, and better visibility for alternative swaps/aggregators.
  • How should governance and rewards be designed to favor long-term contributors and product feedback providers rather than pure point farmers?
  • Best practices for institutional onboarding to Bitcoin-backed stablecoin systems while minimizing custodial and liquidation risk on BTC principal.

Action Items and Near-Term Milestones

  • Liquidium:
    • Present LIQ/sLIQ model and open-source Runes liquid-staking framework at Rinse Asia; release after audits.
    • Launch lending/borrowing APIs for wallet integrations; continue exploring USBD and other stable integrations with BMA/Bima.
    • Continue cross-chain product (Liquidium Fi) toward a later-this-year release.
  • Omnity/Reswap:
    • Integrate with terminal/aggregator partner to route more order flow; lean into lowest-fee positioning.
    • Coordinate with Chinese OrdFi communities to seed deeper LPs; target material depth/volume by end of August.
    • Keep advancing Runes↔Runes atomic routing and open-source AMM tooling for builders.
  • BMA/Bima:
    • Finalize legal work; stage institutional pilot/announcements around the HK events.
    • Expand strategy set for both retail (on-chain/CDP) and institutions (lower-risk exposures; stable-settlement options in USBD/USDC).

Closing Sentiment

  • Broad optimism heading into Hong Kong’s event week, with expectations for announcements, integrations, and liquidity catalysts.
  • Trobican Cafe continues weekly with more guests and panels; focus remains on practical builder updates, liquidity coordination, and cross-ecosystem collaborations.