Challenges

1. 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.

2. 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.

3. 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.

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How Lithium Addresses These Challenges

• 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.