Challenges

Lack of Decentralized Energy-Backed Instruments The global financial system has not yet integrated decentralized, energy-backed instruments, leaving a significant gap between real-world energy production and digital finance.
Limitations of Treasury Bills Treasury Bills, the legacy financial product, suffer from several constraints:
- Centralized issuance controlled by governments.
- Reliance on fiat currency and national monetary policies.
- Yields often fall below inflation, eroding real value.
- Limited accessibility for global investors, creating barriers to entry.
On-Chain Alternatives Are Fragile While on-chain Treasury Bills exist, their market (~$4 billion) remains tied to the U.S. government's "full faith and credit." These instruments have low returns (3-5% yields) and are inherently centralized, offering little innovation compared to their off-chain counterparts.

Decentralized Energy Bonds: By introducing energy-backed instruments, Lithium breaks the reliance on fiat-backed legacy systems.
Boosted Yields: Miners can lock rewards for up to 25% APY, significantly outperforming traditional fixed-income products.
Accessible Marketplaces: A decentralized marketplace allows global participation, unlocking liquidity and yield opportunities for both miners and traders.
Enhanced Security: Locked rewards create sunk costs for miners, improving network stability and preventing short-term adversarial behavior.

Last updated 4 months ago

Lack of Decentralized Energy-Backed Instruments The global financial system has not yet integrated decentralized, energy-backed instruments, leaving a significant gap between real-world energy production and digital finance.
Limitations of Treasury Bills Treasury Bills, the legacy financial product, suffer from several constraints:
- Centralized issuance controlled by governments.
- Reliance on fiat currency and national monetary policies.
- Yields often fall below inflation, eroding real value.
- Limited accessibility for global investors, creating barriers to entry.
On-Chain Alternatives Are Fragile While on-chain Treasury Bills exist, their market (~$4 billion) remains tied to the U.S. government's "full faith and credit." These instruments have low returns (3-5% yields) and are inherently centralized, offering little innovation compared to their off-chain counterparts.

Decentralized Energy Bonds: By introducing energy-backed instruments, Lithium breaks the reliance on fiat-backed legacy systems.
Boosted Yields: Miners can lock rewards for up to 25% APY, significantly outperforming traditional fixed-income products.
Accessible Marketplaces: A decentralized marketplace allows global participation, unlocking liquidity and yield opportunities for both miners and traders.
Enhanced Security: Locked rewards create sunk costs for miners, improving network stability and preventing short-term adversarial behavior.

Last updated 4 months ago