INIT Capital
  • Protocol Overview
    • Introduction
    • Liquidity Hook
      • Benefits to DApps
      • Benefits to INIT Users
    • INIT Growth Loop
  • Lending
    • Assets List
    • How Deposit Works
    • Lending APR
    • LP Tokens as Collateral
    • Lending Cap
  • Borrowing
    • Assets List
    • Borrow Cap
    • Health Factor
      • Blast Parameters
      • Mantle Parameters
    • Minimal Liquidation
    • Interest Rate Model
    • Flash Borrow
    • Auto E-Mode
    • Debt Ceiling
  • Key Features
    • Flash Borrow
    • Multi-Silo Positions
    • LP Tokens as Collateral
    • Yield-Bearing Tokens as Collateral
  • For dApps
    • Building Liquidity Hook
    • Developer Docs
  • Additional Information
    • Official Links
    • Contract Address
      • Blast
      • Mantle
    • Oracle
    • Audits
    • Media Kit
    • Terms of Use
Powered by GitBook
On this page

Was this helpful?

  1. Key Features

LP Tokens as Collateral

PreviousMulti-Silo PositionsNextYield-Bearing Tokens as Collateral

Last updated 1 year ago

Was this helpful?

INIT Capital’s modular structure enables users to collateralize their LP positions to borrow assets against it. This allows users to continuously earn trading fees and farming rewards while borrowing. Read more.

Standing out from other protocols, INIT has modes for different types of LP tokens to be used as collateral. These modes allow LP Token as collateral and borrow factors to be set, with consideration of all risks involved (smart contract risk, economic risk, etc.).

Tech Infrastructure

To enable LP Tokens as Collateral, the unmanipulated LP token price needs to be identified. This requires a mathematical representation of the LP token’s underlying asset prices.