Welcome to Lithium
  • Lithium Protocol
    • Energy-Backed Finance
    • Challenges
    • Built on Quai Network
    • Energy Bonds
    • Liquid Mining Tokens
    • Protocol Flow
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  1. Lithium Protocol

Energy-Backed Finance

Lithium is a protocol that bridges the gap between traders seeking energy-backed yields and miners looking for instant liquidity against their locked mining rewards.

  • For Miners:

    • Lithium enables miners to lock their mining rewards for predefined durations (3, 6, or 12 months), earning boosted yields of up to 25%, excluding additional protocol incentives.

    • Furthermore, miners can obtain instant liquidity against their locked mining rewards through a secondary market where traders actively seek yield opportunities.

  • For Traders:

    • The secondary market for energy bonds allows traders to gain exposure to energy-backed yielding assets.

    • These assets can be used as collateral in various DeFi primitives, unlocking the full capital efficiency of the energy bonds.


Lithium paves the way for a new era of financial innovation by introducing Energy-Backed Finance, a novel paradigm that connects Proof-of-Work (PoW) mining with decentralized financial systems. The vision is built on the following pillars:

  1. $Qi as an Energy-Backed Flat Coin As the first energy-backed digital dollar, $Qi establishes the foundation for building advanced financial products tied to real-world energy production. It creates a precedent for stable, energy-driven assets.

  2. Energy Bonds as Advanced Financial Products Lithium enables miners to tokenize their mining rewards into energy bonds, turning traditionally idle block rewards into yield-generating instruments. These bonds provide an alternative to legacy financial instruments like Treasury Bills, offering decentralized, energy-backed alternatives.

  3. Lithium as Foundational Infrastructure By facilitating the issuance and trade of Liquid Mining Tokens (LMTs), Lithium serves as a critical infrastructure layer for energy-backed decentralized finance (DeFi). The protocol enables miners to earn boosted yields and provides traders with energy-backed assets that can integrate seamlessly into broader DeFi ecosystems.

  4. What Comes Next?

    • Derivatives and Fixed Income Primitives: The foundation laid by Lithium can support more complex financial products, including derivatives tied to energy output.

    • Yield Tokenization for Leveraged Positions: Traders can tokenize their yield streams to unlock additional capital for investment.

    • PoW-Driven Economic Security: By encouraging miners to lock rewards, Lithium improves the economic security of PoW networks and disincentivizes adversarial behavior.

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Last updated 4 months ago

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