Xitadel is a decentralized finance protocol that helps Web3 projects raise capital without selling the native token, replacing it with the issuance of Liquid Treasury Tokens (LTTs) that are collateralized.
This platform creates a new standard for Web3 capital formation by providing a fixed income investment tool, ensuring 100% transparency On-chain and automation through components like the Binding Machine Program, Keeper Bot, and Watchtower Node.
MAIN CONTENT
Xitadel offers a fundraising model using LTTs instead of selling the native token, avoiding dilution.
The transparent On-chain operation mechanism with monitoring tools and risk automation.
LTTs open up fixed income investment opportunities with stablecoins or tokens for Web3 investors.
What is Xitadel?
Xitadel is a decentralized financial platform designed to address the capital raising challenges of Web3 projects without needing to sell the native token.
Instead, projects that issue LTTs have collateralized assets, helping to protect the value of the native token and provide stability.
This approach helps the project avoid facing dilution risks or sell-off pressures, while investors benefit from transparent fixed returns. This is a significant differentiator from traditional fundraising models in DeFi.
What is Xitadel's mission?
Xitadel's mission is to establish a new standard for capital formation in the Web3 space, optimizing benefits for both developers and investors.
This platform focuses on creating reliable, transparent financial products with high liquidity, thus increasing the scalability of the Web3 ecosystem and enhancing community trust.
"Xitadel is not only a fundraising tool, but also a bridge for funds and institutional investors to access fixed income opportunities in Web3."
Anatoly Yakovenko – Co-Founder Solana, 07/2025
How is Xitadel different from traditional DeFi?
Xitadel is unique in that it does not require selling the native token to raise funds, reducing market pressure and dilution risk. Instead, projects use the native token as collateral to issue LTTs.
Another highlight is that Web3 investors now have a fixed income investment tool, similar to bonds in traditional finance, but operated entirely On-chain transparently.
What is LTT in Xitadel?
LTT (Liquid Treasury Token) is the core product of Xitadel, representing a collateralized investment that provides fixed returns to investors.
There are two types of LTTs: COIN-LTT pays interest in tokens and USD-LTT pays interest in Stablecoin. Each LTT is issued with initial liquidity on AMM, allowing investors to trade immediately after activation.
How does the pricing and risk management mechanism of LTT work?
Xitadel builds a pricing model based on market data, volatility, liquidity, and the capitalization of the collateral token. This is a key factor in ensuring a balanced interest between the project and investors.
Additionally, the Keeper Bot and Watchtower Node system continuously monitor collateral ratios, alerting risks and automatically liquidating when necessary to minimize losses for investors.
"Xitadel's real-time risk management approach is a significant advancement, making the decentralized bond market operate more safely."
Soju – Co-Lead Meteora, 07/2025
What are the main components of the Xitadel system?
Xitadel includes many On-chain components aimed at automating the entire lifecycle of LTT, prominently featuring the Binding Machine Program, Keeper Bot, and Watchtower Node.
Additionally, the system also has an LTT Management Cluster, Funding Vault, Collateral Vault, and Liquidity Pool to ensure asset safety, liquidity, and transparency in transactions.
How does Xitadel operate?
Xitadel operates through a series of steps from initialization, fundraising, activating LTT, trading on AMM to paying principal and interest or liquidation in case of default.
At every stage, the Keeper Bot plays a role in automated verification and monitoring, while the Watchtower Node ensures system transparency and safety by alerting unusual deviations.
What notable developments are in Xitadel's roadmap?
On July 8, 2025, Xitadel completed the Builder Round with the participation of many prominent figures in the Solana ecosystem such as Anatoly (Solana), Soju (Meteora), and Nom (Bonk).
This event shows that the platform has strong support from the development community and has significant scalability potential in the near future.
"Community support from Solana is a testament to the necessity of Xitadel in providing safe and effective capital solutions for Web3."
Nom – Contributor Bonk, 07/2025
Frequently Asked Questions
Is Xitadel transparent?
Yes. The entire process of issuing, trading, and paying is conducted On-chain, monitored by the Keeper Bot and Watchtower Node.
How is LTT in Xitadel different from regular tokens?
LTTs are collateralized and pay fixed returns, while regular tokens do not have profit commitments or asset guarantees.
Can investors withdraw capital early?
Cannot withdraw directly from the vault, but can trade LTT on AMM thanks to the initially provided liquidity.
Who is Xitadel suitable for?
Xitadel is suitable for Web3 projects looking to raise capital without selling the native token, and for investors wanting fixed income from stablecoins or tokens.
Has Xitadel had any investors participate yet?
Yes. The Builder Round in July 2025 recorded the participation of Anatoly (Solana), Soju (Meteora), and Nom (Bonk) along with many figures from the Solana community.
Source: https://tintucbitcoin.com/xitadel-la-gi-giao-thuc-defi-giup-du-an-web3-huy-dong-von-ma-khong-can-ban-token/
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