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
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  1. Lending

LP Tokens as Collateral

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Last updated 1 year ago

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INIT supports an array of LP tokens (ERC20, ERC721, ERC1155) and yield-bearing assets as collateral to enhance DeFi composability, e.g., mETH (Mantle’s staked ETH), USDY.

In other words, INIT users can continuously earn trading fees and farming rewards from their LP collateral. The Flash Borrow feature enables users to supply their assets to a liquidity pool, and collateralize the LP tokens they obtained within one transaction. Thus, this allows users to borrow against their LP position allowing them to earn while borrowing.