Raising capital has long been one of the hardest challenges for Web3 projects after launch. Once a token is live, teams are often forced into difficult choices selling large amounts of their native tokens through OTC deals, accepting heavy discounts, or risking long-term damage to their token economy. Xitadel was created to offer a better alternative, one that aligns the interests of builders, investors, and communities while keeping everything transparent and on-chain.
Built on Solana, Xitadel is a decentralized capital formation platform that allows projects to raise funds without selling their native tokens outright. Instead, it introduces a new financial instrument called Liquid Treasury Tokens (LTTs) , a debt-like, on-chain asset backed by a project’s existing treasury. This approach enables teams to access liquidity while preserving ownership, governance, and long-term value.
At a high level, the idea behind Xitadel is simple but powerful. Projects lock a portion of their treasury tokens into smart contracts and use them as collateral to mint LTTs. These LTTs are then sold to investors in exchange for stablecoins. Unlike traditional OTC deals, LTTs are fully transparent, overcollateralized, and tradable on secondary markets, offering real price discovery and liquidity.
For project teams, this model removes the pressure to sell tokens at unfavorable prices. Capital can be raised in a predictable, structured way that supports development, hiring, and ecosystem growth without shocking the market. For investors, LTTs provide a more conservative entry point into crypto offering fixed-income-style returns backed by on-chain collateral rather than speculative price exposure alone.
What makes Xitadel particularly compelling is its focus on trust and sustainability. Every LTT issuance is governed by smart contracts, with clear rules around collateralization, maturity, yield, and liquidation. If collateral value falls below defined thresholds, automated mechanisms step in to protect investors. This removes reliance on opaque agreements or centralized intermediaries and replaces them with verifiable on-chain logic.
Xitadel’s design also reflects a broader shift in Web3 toward more mature financial infrastructure. As the ecosystem grows, there is increasing demand for tools that resemble traditional capital markets but without sacrificing decentralization. Xitadel bridges that gap by bringing fixed-income concepts such as debt issuance and treasury management fully on-chain, in a way that DAOs and crypto-native teams can actually use.
The platform is built with both projects and DAOs in mind. Decentralized organizations can use governance to approve treasury collateralization and LTT issuance, allowing communities to collectively decide how capital is raised and deployed. This aligns funding decisions with long-term vision rather than short-term market pressure.
Security and reliability are central to Xitadel’s approach. By integrating decentralized oracle infrastructure and building within the Solana ecosystem, the protocol benefits from high performance, low costs, and robust data feeds that support accurate pricing and risk management. These foundations ensure that the system can scale alongside growing institutional and ecosystem demand.
Xitadel is not trying to replace existing funding models overnight. Instead, it offers a new option, one that sits between equity-style token sales and traditional lending. As markets mature, this kind of flexible, transparent financing is likely to become essential infrastructure for serious Web3 projects.
At its core, Xitadel is about changing incentives. It gives teams a way to fund growth responsibly, investors a clearer risk-return profile, and communities confidence that their token economy isn’t being quietly diluted behind closed doors. In an industry that has often struggled with trust, that shift matters.
As decentralized finance moves into its next phase, platforms like Xitadel are laying the groundwork for healthier, more resilient capital markets, ones where growth is funded thoughtfully, value is preserved, and everything happens in the open.
Explore Xitadel:
Website:https://xitadel.fi/
Twitter:https://x.com/xitadel_fi
Discord:https://discord.com/invite/xitadel
