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💰 For Liquidity Providers

Surge introduces a novel multi-market architecture, managed by a Decentralised Custody Network (DCN). These markets act as the liquidity layer between BTC and stablecoin capital, enabling Bitcoiners to access different credit markets with different terms while LPs earn risk based yield from actual credit usage.

Unlike traditional DeFi platforms that rely on speculative trading activity, Surge enables LPs to earn predictable, usage-driven yield, with added incentives for participating in network operations like liquidations.

🧩 The Architecture: LP markets + DCN

At the heart of Surge’s lending mechanism is a multi-chain, DCN-coordinated communication layer:

  • Markets exist natively in stablecoins (USDC, USDT) on Ethereum (Base).
  • When a Bitcoiner requests credit, the DCN verifies BTC collateral on-chain, signs a Bitcoin transaction, and authorizes the stablecoin disbursement.
  • The DCN jointly maintains custody policies, validate credit conditions, and enforce programmatic rules for repayment, liquidation, and timelocks.

The DCN effectively bridges Bitcoin and Ethereum/Base trust-minimized, with no wrapping or custodial middlemen.

📈 Variable vs Fixed Supply

Surge’s multi-market layer can offer both variable (floating) and fixed-rate markets. As an LP you can choose how much of your supply earns variable rate vs a fixed rate.

  • Variable market — You supply to the market and earn a utilization-driven floating rate. You can withdraw whenever you want.
  • Fixed-rate markets — You opt in to specific fixed-rate markets (e.g. 6%, 8%) and set allocation limits (e.g. max 50% of your deposit in “Fixed 6%”). When borrowers take fixed-rate loans, your funds may be moved from the variable pool into that fixed market; you earn the fixed supply rate on that portion. Your effective APY is the weighted average of rates across your variable and fixed positions.
  • Withdrawing from fixed — To “withdraw” from a fixed market you swap your position with another lender that wants exposure to that fixed market. If no lenders are available to swap, you can enter a queue, offer to swap your position at a discount, or wait for a borrower from that market to repay.

📊 LP Dashboard & DCN Participation

LPs interact through an intuitive web interface to:

  • Deposit supported stablecoins into active liquidity pools
  • Monitor pool health, active credit lines, interest accrued, and risk metrics
  • Configure preferences like pool size, chain, stablecoin, and duration
  • Join the queue to run a Distributed Custody node

Running a Distributed Custody node is optional, but highly encouraged for active LPs. It enables:

  • Priority yield opportunities and liquidation incentives
  • Visibility into on-chain conditions and vault-level transparency

💰 Why LPs Choose Surge

  • Untapped Bitcoin-native demand - Yield from BTC-backed credit lines in a transparent market, previously gated behind CeFi platforms
  • Competitive, real yield - Interest paid by Bitcoiners drawing credit, not speculative APYs
  • Liquidation bonuses - 5% liquidation premium on undercollateralized positions goes to pools
  • Compliant-ready design - Surfaces under the GENIUS Act framework for stablecoin operations
  • Build your Bitcoin treasury - Grow BTC position by providing fiat liquidity
  • Grow your Bitcoin treasury - 5% liquidation premium on purchasing undercollateralized positions

Unlike ETH-centric DeFi or risky alt-L2 plays, Surge offers Bitcoin-first, credit-driven utility that compounds over time.

Surge brings yield back to the fundamentals: real users, real assets, and verifiable on-chain logic, not token games or circular lending.