# Introduction

Welcome to INIT Capital, The Liquidity Hook Money Market.

[INIT Capital](http://init.capital) is founded on the belief that liquidity should be an accessible commodity for everyone. The platform aims to democratize access to liquidity, catering not only to DeFi users but also to protocols through 'Liquidity Hooks.'

One of the biggest challenges for DeFi protocols nowadays is to bootstrap initial liquidity and consistently source it in order to grow. 

Many protocols struggle to access liquidity in money markets due to its lack of composability, thereby capping protocol growth. While the DeFi landscape evolves continuously to accommodate diverse borrowing use cases, the architecture of money markets has not correspondingly evolved. This prompts protocols to independently source liquidity themselves, though liquidity is limited. Consequently, protocols spend a significant amount of their native token supply on incentives to source liquidity. This approach is unsustainable in the long term and leads to liquidity fragmentation.

To permanently solve this problem, new protocols need the ability to seamlessly integrate their applications with a large source of liquidity—a money market partner that prioritizes composability, soon on [Mantle Network](https://www.mantle.xyz/).

### INIT Functions as the Foundational Liquidity Layer for DApps, Designed to Foster Use Cases for DApps to Build Liquidity Hooks Upon

TL;DR: All stakeholders at INIT, from dApps to users, can savor the experience of this Liquidity Hook money market.

* **DApps:** Source liquidity from INIT with ease by building a 'Liquidity Hook' to integrate onto INIT.
* **Lenders:** Enjoy higher lending APR as INIT’s integration partners exercise liquidity and expand the user base on INIT.
* **Borrowers:** Access Liquidity Hooks built by dApps to explore multiple yield strategies through INIT’s all-in-one dashboard.


# Liquidity Hook

## Liquidity Hook, a Plugin for Liquidity on INIT

Liquidity Hooks serve as plugins for liquidity. DApps developing strategies such as all kinds of vaults, leveraged LP/Farming, perpetual trading, margin trading, LSTFi, etc., can easily build Liquidity Hooks by writing their smart contracts to integrate or 'hook' onto INIT and access INIT’s liquidity in a permissionless manner. With that, dApps can fully concentrate on catering yield strategies or 'Hooks' for end-users. 

<figure><img src="https://2824399333-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FFLvXoyZPiNdlXsKNZeao%2Fuploads%2Fyv5Tvs1E9rve7WEvZk8R%2FLiquidity%20Hooks%20(1).png?alt=media&amp;token=47194acc-995c-4118-8086-ec58bc13ce96" alt=""><figcaption></figcaption></figure>


# Benefits to DApps

DApps can seamlessly bootstrap liquidity within INIT, expanding their user bases within INIT’s ecosystem and experiencing exponential growth. INIT is specifically designed for maximum composability and interoperability with DApps, enabled by key technologies such as Multi-Silo Position and LP Token as Collateral. These are the main features that make INIT composable, setting it apart from other platforms.

## **Multi-Silo Positions**

At INIT, each lending and borrowing position is siloed. This means each position is risk independent, even when using the same type of collateral. For instance, a wstETH-collateralized position borrowing USDC, USDT, or DAI is distinct from another using wstETH to borrow ETH for looping. If wstETH slightly depegs, the latter position can get liquidated but not the former.

In contrast, existing money markets often view all users' positions as a single account, thereby permitting potential liquidation of users' positions even when only one position is at risk.

As a result, this architecture grants dApps the flexibility to easily build various types of Liquidity Hooks on INIT, supporting a wide array of yield strategies.

<figure><img src="https://2824399333-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FFLvXoyZPiNdlXsKNZeao%2Fuploads%2F6YHuINMVfVL7tLXHb7M3%2FMulti-Silo%20Position.png?alt=media&amp;token=957ccec0-04b7-4cd6-a491-b55a28952182" alt=""><figcaption></figcaption></figure>

## **Flash Borrow**

To enhance composability further, INIT introduces Flash Borrow—a highly composable version of flash loans.

Users can borrow asset X and return Y as collateral within a single transaction, unlocking a wide range of Liquidity Hook possibilities. For example:

* A user provides $100 ETH as collateral on Alice Protocol, a leveraged yield farming protocol.&#x20;
* Alice flashborrows $400 USDC from INIT
* Alic provides $500 liquidity to Uniswap V3 and receive LP token
* Alice returns $500 LP token as collateral on INIT

All of these are completed within the same transaction.&#x20;

<figure><img src="https://2824399333-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FFLvXoyZPiNdlXsKNZeao%2Fuploads%2Fa7JZSZgNL7BtBryE7Pa8%2FFlash%20Borrow.png?alt=media&amp;token=8cbbba51-318f-4872-9d73-39916c2460d1" alt=""><figcaption></figcaption></figure>

## **LP Tokens as Collateral**

Presently, many money markets do not support LP tokens as collateral, thereby inhibiting DeFi composability. Numerous protocols have already developed diverse yield strategies based on LP tokens, like GMX, Pendle, Convex Finance, etc. Hence, a surge in the adoption of LP tokens as base assets is expected, allowing for the creation of more flexible and unique yield strategies. Therefore, supporting LP tokens as collateral is crucial for DeFi composability within INIT.&#x20;

INIT is poised to support a range of LP tokens, encompassing ERC20 (AMM LP), ERC721 (CLAMM LP), and ERC1155, to provide users with various options for yield strategies.<br>

<figure><img src="https://2824399333-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FFLvXoyZPiNdlXsKNZeao%2Fuploads%2F9qXptcBAc7HansWEfoWr%2FLP%20Token%20as%20Collateral%20(2).png?alt=media&amp;token=22ecb605-059f-4d51-9b09-b21aec7c9d0b" alt=""><figcaption></figcaption></figure>


# Benefits to INIT Users

Accessibility to yield strategies and hooks

## Access All Yield Strategies Within One Interface

INIT users can access and manage various yield strategies or Hooks, all within the INIT interface, ensuring streamlined visibility and enhanced control. Users can find various yield strategies to interact with through INIT Capital without having to look elsewhere. Whether it's lending, borrowing, looping, perp trading, leveraged LP/Farming, etc. INIT has it all.&#x20;

Within each Hooks, users can select their favorite Liquidity Hook or dApps to use to their desire. For example, there may be a few protocols building the Leveraged LP/Farm on INIT, and the users may choose which one they want to interact with all through INIT's interface.

<figure><img src="https://2824399333-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FFLvXoyZPiNdlXsKNZeao%2Fuploads%2FOXEFnxqYjtA1ggWFwYJQ%2FLiquidity%20Hooks.png?alt=media&amp;token=5391dfa3-15df-4abd-ab79-03ccf39796a4" alt=""><figcaption></figcaption></figure>

## **Auto E-Mode (Auto Efficiency Mode)**

INIT ensures users have maximum borrowing power to enjoy strategies with the highest capital efficiency.

With Auto E-Mode, assets with correlated prices are automatically grouped to enhance capital efficiency and maximize your borrowing power.&#x20;

When collateral and borrowed assets are in the same mode, users benefit from increased collateralization power, leading to higher capital efficiency.

&#x20;Here are a few example of modes on INIT:&#x20;

* ETH & wstETH mode (ETH and wstETH)&#x20;
* LST mode (ETH, wstETH, rETH, ETHx, mETH)
* Stable RWA mode (USDY, sDAI, stUSDT, TBILL, USDT)
* Stablecoin mode (USDT, USDC, DAI)
* Major mode (BTC, ETH)

<figure><img src="https://2824399333-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FFLvXoyZPiNdlXsKNZeao%2Fuploads%2FMM2zRPYjbpoiSbT09sZA%2FAuto%20E-Mode%20(1).png?alt=media&amp;token=56cba009-5c25-4614-8ea8-271b84d3326e" alt=""><figcaption></figcaption></figure>

## Manage All Your Positions Through INIT's All In One Dashboard

Simply select the asset(s) you want to interact with, choose a Liquidity Hook to to generate yield with the chosen asset(s), you will have successfully opened a position. All of your positions will be accessible through INIT's all-in-one dashboard where you are able to monitor and manage all of your positions in a single page.&#x20;

Within the dashboard, users can click manage their positions, where they can take four actions:

1. Borrow more
2. Repay a portion of their debt to deleverage or repay in full
3. Deposit more collateral
4. Withdraw a portion or all of their collateral

<figure><img src="https://2824399333-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FFLvXoyZPiNdlXsKNZeao%2Fuploads%2FGudBpfkG5qkK0bl0mSQH%2FHow%20It%20Works_Desktop.png?alt=media&amp;token=16b6996a-983d-4922-9ba7-5ad2a1bf0b4c" alt=""><figcaption></figcaption></figure>


# INIT Growth Loop

Liquidity Hooks play a pivotal role in reinforcing interconnected growth loops created within INIT.

<figure><img src="https://2824399333-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FFLvXoyZPiNdlXsKNZeao%2Fuploads%2FSwRb0hJmLJtgDcH9sapa%2FThe%20Init%20Growth%20Loop_illus.gif?alt=media&amp;token=292a8404-0d40-4d0c-a16a-8fc50763f50f" alt=""><figcaption></figcaption></figure>

1. Lenders and lending vaults lend to INIT.&#x20;
2. As **Liquidity Hook** is added, INIT lends liquidity to Liqudity Hook.
3. The borrowing demand on INIT increases from users on 2 fronts:
   * Users utilizing the integrating protocol, which under the hood is using INIT.
   * Users utilizing LH directly on INIT.
4. This leads to a higher lending APY on INIT, attracting more lenders and lending vaults, resulting in higher TVL and more available liquidity for new Liquidity Hooks to use.
5. Ultimately, attracting new integrating protocols to build Liquidity Hooks, tap into INIT’s liquidity and the user base of the other existing Liquidity Hooks to capture that growth opportunity. As a result, more Liquidity Hooks on INIT, repeating this reinforcing growth loop from point 1.


# Assets List

### Major Assets

* WETH/ETH
* MNT
* WBTC

### Stable assets

* USDT
* USDC

### Liquid-Staking Assets

* mETH
* wstETH (in February 2024)

### LP Tokens (Phase 2 TBD Pools)

* UniswapV2-like LP token
* UniswapV3-like NFT position (CLAMM)
* JoeV2-like LP token (CLAMM)

Note: INIT will only support tokens that have on-chain price oracles on API3.

<br>


# How Deposit Works

Deposit supported assets to the corresponding lending pools to receive inTokens. inTokens are interest-bearing tokens that accrue value over time from borrowing interests. It is represented as ‘inxxx’ in your wallet, for example: inETH, inUSDT, etc.

The inTokens’ values will constantly increase at the rate of their current interest rate as they continue to accrue interest. To convert your inTokens back to the deposited assets, simply withdraw. Given that the lending pool has enough unutilized tokens, you will receive your deposited assets, while the inToken gets burnt upon withdrawal.


# Lending APR

inToken holders receive continuous earnings depending on market conditions based on:

1. Lending pool utilization: Higher utilization means liquidity in the pool is more scarce, which leads to higher APR
2. Borrowing interest: Lenders share the interests paid by the borrowers corresponding to the borrowing rate and the utilization

The lending APR is derived as:

`Lending APR = Utilization Rate * borrow_interest_func(utilization) * (1 - reserve_factor)`

* where the `borrow_interest_func` is the double-slope interest rate model and `reserve_factor` is the protocol fee
* Each asset has its own market supply and demand with its own lending APR that constantly evolves.


# LP Tokens as Collateral

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.

<figure><img src="https://2824399333-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FFLvXoyZPiNdlXsKNZeao%2Fuploads%2F9qXptcBAc7HansWEfoWr%2FLP%20Token%20as%20Collateral%20(2).png?alt=media&amp;token=22ecb605-059f-4d51-9b09-b21aec7c9d0b" alt=""><figcaption></figcaption></figure>


# Lending Cap

There is a lending cap for each lending pool. This limits the amount that users can deposit to each lending pool. The supply cap exists to prevent the infinite mint attack, which is when some tokens’ total supply (e.g. LUNA, UST) can be used as collateral to potentially borrow all assets from the lending pools.


# Assets List

## Mantle

### Major Assets

* WETH/ETH
* MNT
* WBTC

### Stable assets

* USDT
* USDC

### Yield Bearing Assets

* mETH
* USDY

## Blast

### Major Assets

* ETH
* USDB

Note: INIT will only support tokens that have on-chain price oracles on API3.


# Borrow Cap

The Borrow Cap represents the maximum token amount that users can borrow from each INIT lending pool. It is mostly determined by the circulating supply of tokens within the chain.

## Why is this important?

It serves to prevent situations where borrowed tokens cannot be repaid, often resulting from liquidation. This is because liquidators would need to exchange the borrowed tokens for collateral tokens.


# Health Factor

The Health Factor is a numerical value that indicates the safety of your position from its liquidation point. A higher value indicates a healthier position, and thus, greater safety against liquidation.

If the Health Factor drops to 1 or below, liquidation is triggered.

The calculations are as follows:

Health Factor = Collateral Credit / Borrow Credit

$$
HealthFactor=CollateralCredit/Borrow Credit
$$

Where

* **Collateral Credit:**

$$
Collateral Credit=\sum(Token Amount*CollateralTokenPrice*CollateralFactor)
$$

* **Borrow Credit:**

$$
BorrowCredit=\sum(TokenAmount*BorrowTokenPrice*BorrowFactor)
$$

### Collateral and Borrow Factors

Note: Collateral Factor should be <= 1, Borrow Factor should be >= 1

{% content-ref url="/pages/phFur9QiH2k6OSvACz28" %}
[Mantle Parameters](/borrowing/health-factor/mantle-parameters)
{% endcontent-ref %}

{% content-ref url="/pages/MmPRCcim3gGw5yWBqzJ7" %}
[Blast Parameters](/borrowing/health-factor/blast-parameters)
{% endcontent-ref %}


# Blast Parameters

## Parameters

#### General Mode

| Tokens | Collateral Factor | Borrow Factor | Debt Ceiling |
| ------ | ----------------- | ------------- | ------------ |
| ETH    | 0.8               | 1.2           | Max          |
| USDB   | 0.9               | 1.1           | Max          |

*Note: Debt Ceiling is max due to default mode's ceiling is capped by the liquidity available in the lending pool.*

*Note: 0 means no liquidity on DEX yet, cannot liquidate*


# Mantle Parameters

#### General Mode

| Tokens | Collateral Factor | Borrow Factor | Debt Ceiling |
| ------ | ----------------- | ------------- | ------------ |
| WETH   | 0.85              | 1.15          | Max          |
| WBTC   | 0.8               | 1.2           | Max          |
| MNT    | 0.8               | 1.2           | Max          |
| USDC   | 0.93              | 1.07          | Max          |
| USDT   | 0.9               | 1.1           | Max          |
| mETH   | 0.8               | 1.2           | Max          |
| wstETH | 0.8               | 1.2           | Max          |

*Note: Debt Ceiling is max due to default mode's ceiling is capped by the liquidity available in the lending pool.*

#### Non-Stable Mode

| Tokens | Collateral Factor | Borrow Factor | Debt Ceiling |
| ------ | ----------------- | ------------- | ------------ |
| WETH   | 0.9               | 1.07          | 1,000        |
| WBTC   | 0.85              | 1.1           | 20           |
| MNT    | 0.85              | 1.1           | 3,000,000    |
| mETH   | 0.85              | 1.1           | 0            |
| wstETH | 0.85              | 1.1           | 0            |

#### Stable Mode

| Tokens | Collateral Factor | Borrow Factor | Debt Ceiling |
| ------ | ----------------- | ------------- | ------------ |
| USDC   | 0.95              | 1.05          | 1,000,000    |
| USDT   | 0.92              | 1.08          | 1,000,000    |

#### LST Mode

| Tokens | Collateral Factor | Borrow Factor | Debt Ceiling |
| ------ | ----------------- | ------------- | ------------ |
| WETH   | 0.92              | 1.1           | 500          |
| mETH   | 0.9               | 1.12          | 0            |
| wstETH | 0.9               | 1.12          | 0            |

*Note: 0 means no liquidity on DEX yet, cannot liquidate*


# Minimal Liquidation

Users are required to ensure that the position's health factor remains equal to or greater than 1. If the health factor falls below 1, a liquidator has the authority to trigger the liquidation process and acquire the liquidation premium.

In the process of partial liquidation, liquidators have the flexibility to:

* Determine the specific borrowed tokens and the amount to be repaid to INIT.
* Select the collateral tokens to receive along with the liquidation premium.

INIT will calculate the amount of collateral token and the liquidation premium the liquidator receives.

***

To achieve minimal liquidation, INIT employs 2 features:

1. **Dynamic Liquidation Premium**

The liquidation premium linearly increases as the health factor decreases.&#x20;

As the position becomes riskier in health (health factor reduces), there will be more incentive for liquidators to liquidate before the position goes underwater. <br>

The premium of a position will depend on the following factors:

* Health Factor&#x20;
* Mode Liquidation Factor
  * Pegged modes (e.g. stable and LST) have lower liquidation factor.
* Token Liquidation Factor (Both collateral and borrow token)
  * Stable token has lowest factor, major token has medium factor, volatile token has highest factor.

**Premium Calculation Formula**

[`Premium = (1 / health factor - 1) * mode_factor * max(borrow token liquidation factor, collateral token liquidation factor)`](#user-content-fn-1)[^1]

2. **Liquidation Health Factor Threshold**

Liquidators can liquidate until the health factor increases up to a maximum depending on each mode.

This limit is in place to control the amount of borrowed tokens that the liquidator can repay, minimizing the premium amount the position’s owner has to forfeit to the liquidator.

[^1]:


# Interest Rate Model

INIT employs the double-slope interest rate model (IRM) where the borrow interest linearly and slowly increases until utilization reaches the optimal utilization set by INIT.&#x20;

The borrowing interest rate will spike if the utilization is greater than the optimal utilization rate.

The borrowing interest rate is calculated as:

$$
r\_b=a\_0*U+a\_1*\max(U-U\_o,0)
$$

Where:

* $$r\_b$$= Borrowing Interest Rate
* $$U$$= Utilization Rate
* $$U\_o$$= Optimal Utilization
* Where $$a\_0\<a\_1$$

*Note: The optimal utilization rate and slope may be adjusted according to the market conditions.*

The interest rate curves for each asset are shown below:

### WETH

{% embed url="<https://www.desmos.com/calculator/ehfs3yhgwk>" %}

### WBTC

{% embed url="<https://www.desmos.com/calculator/ztuzcemdqe>" %}

### WMNT

{% embed url="<https://www.desmos.com/calculator/mj5iye0j7x>" %}

### USDC

{% embed url="<https://www.desmos.com/calculator/bz4mirhczu>" %}

### USDT

{% embed url="<https://www.desmos.com/calculator/cnprsorqdr>" %}

### mETH

{% embed url="<https://www.desmos.com/calculator/u2sswci1di>" %}


# Flash Borrow

Flash borrow is a more composable type of flash loan.&#x20;

When a user creates a position, rather than having to deposit collateral before borrowing such that position is healthy, a user can:

1. Borrow tokens
2. Use the borrowed tokens for arbitrary actions in integrated protocols&#x20;
3. Deposit collateral to ensure position is healthy

All of that, within one transaction. This allows users to borrow A to interact with integrated protocols, to return B as collateral – which maximizes composability.

Ultimately, this simplifies the looping process, position rebalancing, and minimizes gas fees.


# Auto E-Mode

Auto E-Mode (Auto Efficiency Mode) automatically groups the collateral and borrowed assets with highly correlated prices together to enable the highest borrowing power.

**Current Modes:**

* **Stable mode** – All stablecoins and their derivatives&#x20;
  * USDT, USDC
* **Non-stable mode** – All non-stable assets&#x20;
* **LST mode** – All WETH and its derivatives
  * WETH, mETH, wstETH
* **LP as collateral mode (coming soon)**

When a user adds collateral and borrows tokens to a position, INIT automatically directs the position to the mode which provides the highest achievable health factor.

However, if the user adds collateral or borrows tokens outside of the position’s current mode, the mode may change, leading to a lower health factor.

Here’s an example of how Auto E-Mode optimizes asset utilization for improved efficiency:

In default mode, User A uses mETH as collateral with a collateral factor of 0.75 to borrow ETH with a borrow factor of 1.2. If the user opens a position with **10 mETH as collateral**, the **maximum amount** of ETH that the **user can borrow is 6.25 ETH.**

Let’s say ETH price is at $2,000. Using mETH with a collateral factor of 0.75 in default mode means that the user can borrow up to 75% of the mETH collateral value. Providing 10 mETH as collateral results in the collateral credit of:

$$
CollateralCredit: 10*2000*0.75=15000
$$

Borrowing ETH with a borrow factor of 1.2 means that the borrow credit is higher to act as a buffer to reduce the chance of default risk. So the borrow credit would be:

$$
Borrow Credit: 6.25*2000*1.2
$$

Since the health factor is derived from Collateral Credit / Borrow Credit, the example above would result in the Health Factor = 1. This means the position is at the liquidatable point. The user must borrow less than 6.25 ETH for a more favorable health factor.&#x20;

However, if the user opens the same position in LST mode, where the mETH collateral factor is 0.9 and the ETH borrow factor is 1.05, the user, with the same 10 mETH collateral, can now borrow up to 8.57 ETH.&#x20;

With the same ETH price, in LST mode, the user can now borrow up to 90% of their mETH collateral value. This provides the collateral credit of:

$$
CollateralCredit:10*2000*0.9=18000
$$

In LST mode, knowing that the collateral and borrow assets are correlated, the borrow factor for ETH with mETH as collateral is 1.05, meaning that the user can borrow more ETH from the original borrowing capacity. This results in the borrow credit of:

$$
BorrowCredit: 8.57*2000*1.05=\~17997
$$

With default mode, the parameters are generally adjusted to have wider buffer range, providing less margin to borrow. With LST mode, the system knows that the assets are correlated, therefore, there are less chances of deviation between the two assets. With that, the parameters do not need to have a wide buffer range and users can borrow at a higher capacity, as well as increased borrow credit.&#x20;


# Debt Ceiling

The Debt Ceiling limits the amount of tokens that a mode can borrow from the lending pool. This limits and isolates the risk of lenders in the instance that a token is depegged from the correlated assets.


# Flash Borrow

Flash borrow allows users to borrow A to interact with integrated protocols, to return B as collateral, maximizing composability.

This simplifies the looping process, position rebalancing, and minimizes gas fees.

[Read more](/borrowing/flash-borrow)

<figure><img src="https://lh7-us.googleusercontent.com/UgcWXO-ai30m5VM9-TpSiGqxtbldPr5cMeYzUWya1e04jRszJVQeGGDvr-rTcyr4fE_tP3ZmCyXEkyJ7CQwKy4fFnw5xmMxnwE7DAm8fv_GyBbY1sjMIOHZ-Ic_-K9dowVHusINLsqPJKB8BN3v1VQY" alt=""><figcaption></figcaption></figure>

## Flash Borrow vs Flash Loans

In flash loans, users can borrow liquidity from lending pools for any arbitrary use and return the borrowed liquidity without any fee within one transaction. The lending pool’s token is guaranteed to remain unchanged after the transaction.&#x20;

On the other hand, flash borrow allows users to manage their positions automatically using the available liquidity from the lending pools. However, the users’ position must be healthy, and the lending pool’s token is not guaranteed to remain unchanged after the transaction.


# Multi-Silo Positions

Multi-silo positions allow different positions to be risk-independent even when using the same collateral. Each position is also viewed separately even if executed from the same smart contract (within the same integrating protocol on INIT). [Read more](/protocol-overview/liquidity-hook/benefits-to-dapps#multi-silo-positions)

<figure><img src="https://2824399333-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FFLvXoyZPiNdlXsKNZeao%2Fuploads%2F6YHuINMVfVL7tLXHb7M3%2FMulti-Silo%20Position.png?alt=media&amp;token=957ccec0-04b7-4cd6-a491-b55a28952182" alt=""><figcaption></figcaption></figure>

## Protocols with Multi-Silo Positions vs without

With multi-silo positions, 1 user can have many isolated positions that are risk-independent of each other, therefore, an unhealthy position does not affect other healthy positions.&#x20;

Without multi-silo positions, 1 user can only have 1 cross position. This means that everything is viewed as 1 position, and an unhealthy position could affect other positions resulting in potential liquidation of other positions that may not be unhealthy.


# LP Tokens as Collateral

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.&#x20;

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.).

<figure><img src="https://2824399333-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FFLvXoyZPiNdlXsKNZeao%2Fuploads%2F9qXptcBAc7HansWEfoWr%2FLP%20Token%20as%20Collateral%20(2).png?alt=media&amp;token=22ecb605-059f-4d51-9b09-b21aec7c9d0b" alt=""><figcaption></figcaption></figure>

## 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.


# Yield-Bearing Tokens as Collateral

Users can also choose to use yield-bearing tokens as collateral, which allows your collateral to accrue interest from lending as your lending APR.


# Building Liquidity Hook

With [multi-silo position](/key-features/multi-silo-positions), [flash borrow](/borrowing/flash-borrow), and [LP tokens as collateral](/lending/lp-tokens-as-collateral), building Liquidity Hooks on INIT becomes a simple and seamless process for dApps.&#x20;

## Value Proposition

dApps integrating on INIT and building Liquidity Hooks on INIT do not need to bootstrap liquidity at launch or continue to source liquidity to grow – INIT does that for them. There is no need to formulate risk frameworks and parameters, as they can use INIT’s.&#x20;

Moreover, with Liquidity Hooks, dApps can integrate seamlessly to access the abundant liquidity on INIT with no additional attack vectors and risk introduced. On top of everything, dApps on INIT can capitalize on INIT’s user base that is constantly exploring different Liquidity Hooks – essentially bringing more exposure to their own dApps and creating another marketing channel for themselves.

## Smart Contract Development

INIT Capital operates on a permissionless, verifiable on-chain system, allowing developers to seamlessly create Liquidity Hooks in alignment with our protocol. For comprehensive guidance on developing your Liquidity Hook with INIT, please refer to our detailed documentation available [here](https://dev.init.capital/).

{% content-ref url="/spaces/9udqkumaxOTQ2fIsamp8" %}
[INIT Capital Developer Docs](https://dev.init.capital/)
{% endcontent-ref %}

## Hook Listing&#x20;

By listing you Liquidity Hook on INIT's frontend, you unlock the potential to broaden your user base through exposure to INIT's community. We offer two types of frontend integration: Normal Integration and Official Partner Integration.

<figure><img src="https://2824399333-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FFLvXoyZPiNdlXsKNZeao%2Fuploads%2FYGDD5Pgbg00r0H8hQw2t%2FScreenshot%202567-03-08%20at%2000.24.40.png?alt=media&amp;token=4f16184a-128d-433f-b8b8-61aa86fe6a70" alt="" width="375"><figcaption></figcaption></figure>

### Normal Listing

To feature your Liquidity Hook on the INIT platform, you'll need to follow the instruction on our [Github Repository](https://github.com/init-capital/liquidity-hooks) and submit a Pull Request (PR) with the details of your integration. Please include the following information in your PR:

```json
{
    "name": "Name of the Hook",
    "protocol": "Protocol Name",
    "logoUrl": "URL to the logo image of the protocol for the hook",
    "description": "Description of how the hook works",
    "type": "LOOPING | MARGIN_TRADING | LEVERAGED_YIELD_FARMING | VAULT | YIELD_STRATEGY",
    "supportedAssets": ["List of the supported asset addresses"],
    "hookContractAddress": "Contract address",
    "apyEndpoint": "Endpoint for the APY of the hook",
    "fee": "Specify if the hook includes a fee (Optional)"
}
```

This information helps us ensure that your Liquidity Hook is accurately represented on our platform.

### **Official Partner Listing**

Achieving the Official Partner status not only adds a purple tag to your listing on our frontend but also signifies a higher level of trust and verification. To qualify, your Liquidity Hook must undergo and pass an audit, in addition to an internal review by the INIT Team.

For consideration as an Official Partner, please submit your details through the **INIT Official Partner Integration Form** available here: <https://forms.gle/CLSTKQe9cwXUxyjg7>.

<br>


# Official Links

Twitter: <https://init.capital/x>

Discord: <https://init.capital/discord>

Website: <https://init.capital/>

Medium: <https://init.capital/medium>


# Contract Address

###


# Blast

### Blast Specific

POINT\_OPERATOR = `0xf62E7c831fc41C93B61C04c24152c433D6553236` (Multisig Point Operator Contract)

### Main

INIT\_CORE = `0xa7d36f2106b5a5D528a7e2e7a3f436d703113A10`&#x20;

PROXY\_ADMIN = `0x340B6C30e012eC9903EbB6B8d468576E60d8d1F4`&#x20;

ACCESS\_CONTROL\_MANAGER = `0x265DAA697489968AEbd650c665F4Fb241b560785`&#x20;

API3\_ORACLE\_READER = `0x0C2Da1659c2351D504c80e60C6077D971b96Fc06`&#x20;

API3\_REBASE\_ORACLE\_READER = `0x47Dc5921527A6F8138EC7EF8945F09B182DFba3A`&#x20;

INIT\_ORACLE = `0xe31686E5590E4FD5D5418Fe3c4e9368EfD75e2eF`&#x20;

CONFIG = `0x57200D2B0C36244B3c8EBf99e5724c7536cea2F7`&#x20;

LIQ\_INCENTIVE\_CALCULATOR = `0xed9d7E89309B060e876098F4695aB9fd3011904b`&#x20;

POS\_MANAGER = `0xA0e172f8BdC18854903959b8f7f73F0D332633fe`&#x20;

RISK\_MANAGER = `0xD97Bb363b5B925cF95acD7c463045750514C68C1`

### Wrappers

WWETH = `0xf683Ce59521AA464066783d78e40CD9412f33D21`  (Blast Gold Receiver Contract)

WUSDB = `0x4B246c4C41c4e5eC1d4A8453c313cbc57Bf0993A`

### Hooks

MONEY\_MARKET\_HOOK = `0xC02819a157320Ba2859951A1dfc1a5E76c424dD4`

### Reader

INIT\_LENS = `0x56Fba2cC045C02d7adAE5A9dfDce795900b2860E`

### Lending Pools

POOL\_WWETH = `0xD20989EB39348994AA99F686bb4554090d0C09F3`&#x20;

POOL\_WUSDB = `0xc5EaC92633aF47c0023Afa0116500ab86FAB430F`

### IRMs

IRM\_WWETH = `0x72eE68Fc1D6650b32314188321e92a8B4F3b552A`&#x20;

IRM\_WUSDB = `0x95b8640e5a9a496427D089b14F6736de212852D0`

### Implementations

API3\_ORACLE\_READER\_IMPL = `0x5f1a7dBD31F0DeD2f8A1Ca3FC79919F9866248Fc`&#x20;

INIT\_ORACLE\_IMPL = `0x92E4Af57baFe3f94569a729dD0BE3AbE4615e542`&#x20;

CONFIG\_IMPL = `0xe1D36e2790dD75Ab34e789192e146e8A3a32b18d`&#x20;

LIQ\_INCENTIVE\_CALCULATOR\_IMPL = `0x721AD8F7eF913C7b9775f9F90D35321B23577ce7`&#x20;

POS\_MANAGER\_IMPL = `0x65D8D9dcaeC8373f79328b59798629506599f232`&#x20;

INIT\_CORE\_IMPL = `0x815e63d6B5E1b8D74876fC9a2C08b79d4185494b`&#x20;

RISK\_MANAGER\_IMPL = `0x75d40BEC66182a989D4b5e40fd76680AacFf1836`&#x20;

MONEY\_MARKET\_HOOK\_IMPL = `0x214d40dc973802859afcDa42333bA98Fa78e4E4a`&#x20;

LENDING\_POOL\_IMPL = `0x22Eb74AB07Ce90138f0FE4B2fDafeE1738B0dE11`&#x20;

WWETH\_IMPL = `0x4a7CCBe0b4f01E3d30b203C087e67b72065A011d`&#x20;

WUSDB\_IMPL = `0x0d87d19004EF1a20085f37108AB0f05398365d32`


# Mantle

### Main

PROXY\_ADMIN = `0xa55A591f91103D84106ba79EdA446eBDbfe26F7A`

ACCESS\_CONTROL\_MANAGER = `0xCE3292cA5AbbdFA1Db02142A67CFFc708530675a`&#x20;

API3\_ORACLE\_READER = `0x5Fd18Fa97f96B546848C729201794456640f6198`&#x20;

INIT\_ORACLE = `0x4E195A32b2f6eBa9c4565bA49bef34F23c2C0350`&#x20;

CONFIG = `0x007F91636E0f986068Ef27c950FA18734BA553Ac`&#x20;

LIQ\_INCENTIVE\_CALCULATOR = `0x66BDbf2Eefc84f83b476dB238574ca5Cb00550aD`&#x20;

POS\_MANAGER = `0x0e7401707CD08c03CDb53DAEF3295DDFb68BBa92`&#x20;

INIT\_CORE = `0x972BcB0284cca0152527c4f70f8F689852bCAFc5`&#x20;

RISK\_MANAGER = `0x0c03cd3e8b669680Bf306Fc72F1dc2cAC592f951`&#x20;

LSD\_API3\_ORACLE\_READER = `0xE6239b9eAEaec464098911c15700e4E0CCb2f092`

### Hooks

MONEY\_MARKET\_HOOK = `0xf82CBcAB75C1138a8F1F20179613e7C0C8337346`

LoopingHook (swap via MerchantMoe) = `0xEfB43E833058Cd3464497e57428eFb00dB000763`

LoopingHook (swap via Agni) =`0x9567940746fdA24aa98160Ae3dACdbD51dae7D33`

LoopingHook (swap via FusionX) =`0xe4Fe22F64F37bA62BDDFeD3B05DaBcc1F01Ad1Ad`

### Reader

INIT\_LENS = `0x4725e220163e0b90b40dd5405ee08718523dea78`

### Implementations

API3\_ORACLE\_READER\_IMPL = `0x1450e76F4E969778d1ffb5b700b416fA9C41b4Ae`&#x20;

INIT\_ORACLE\_IMPL = `0x7928419135cE5427858F0F5c0cbA3151b9b14f81`&#x20;

CONFIG\_IMPL = `0x1dBD1e94373b3163F4376d6ae1A39DB9fdA334cB`&#x20;

LIQ\_INCENTIVE\_CALCULATOR\_IMPL = `0xDDC99aeef7D5F87118A3A2636F7D0FB6c60daCF3`&#x20;

POS\_MANAGER\_IMPL = `0x995b3D3CF83d5A0040b56b0201d3d2Db6E369DBF`&#x20;

INIT\_CORE\_IMPL = `0xf8B8552D52986F06Ffaf14Bc88bfCF6DCBDbA05D`&#x20;

RISK\_MANAGER\_IMPL = `0xf3416748553EA93643aa8B5A7879F2C40018002b`&#x20;

MONEY\_MARKET\_HOOK\_IMPL = `0x06cAb8cbD9bb02dB40eBa963A8C38d4C5924dA84`&#x20;

LENDING\_POOL\_IMPL = `0x423bB7577BCf594df986D9646B44D3144b3329FD`&#x20;

LSD\_API3\_ORACLE\_READER\_IMPL = `0xDc9311F1FFD2cC42F3de7eC26E8cdda5a7b99A01`

### IRMs

IRM\_WETH = `0xEe619435DE204914c71df9AC7Bbb4BeCD3c9eaF0`

IRM\_WBTC = `0x196D4E073687e8a61810725C1A299584494367E9`

IRM\_WMNT = `0xF25E438eFad5a865A72f9FE39Ffd9aeC1F18398e`&#x20;

IRM\_USDC = `0x0959a65AB35cbF335AbAdC7793e2E8CAC81aE7e4`&#x20;

IRM\_USDT = `0x00fA41248F6c3A26863ec56634Fe78Ad4E4748EC`&#x20;

IRM\_METH = `0x32f533EAbD0B128e7EbE391DcC3F012701618B62`

### Pools

POOL\_WETH = `0x51AB74f8B03F0305d8dcE936B473AB587911AEC4`&#x20;

POOL\_WBTC = `0x9c9F28672C4A8Ad5fb2c9Aca6d8D68B02EAfd552`&#x20;

POOL\_WMNT = `0x44949636f778fAD2b139E665aee11a2dc84A2976`&#x20;

POOL\_USDC = `0x00A55649E597d463fD212fBE48a3B40f0E227d06`&#x20;

POOL\_USDT = `0xadA66a8722B5cdfe3bC504007A5d793e7100ad09`&#x20;

POOL\_METH = `0x5071c003bB45e49110a905c1915EbdD2383A89dF`


# Oracle

As a lending protocol, INIT is committed to offering unparalleled security to its users by utilizing several world-class Oracle Providers, including [API3](https://api3.org/) and [Pyth](https://pyth.network/) (coming soon).&#x20;

The INIT Oracle aggregates prices from multiple integrated oracles, ensuring that the output price remains within the predefined threshold, thereby providing a reliable price feed at all times, even in instances where some oracle sources may be unavailable.

In the event of a price deviation between sources reaching the threshold, the INIT Oracle will **pause** all actions within the protocol until all the oracles are back to normal. This measure is taken to guarantee that no actions are executed based on inaccurate feed prices, maintaining the integrity and reliability of the protocol.


# Audits

INIT Capital's smart contracts have been audited by Trust Security, Peckshield, and some of the top tier wardens from Code4rena. All INIT smart contracts are open-sourced.

The audit reports can be found in our Github repo: <https://github.com/init-capital/init-core-public>


# Media Kit

### Brand Guideline

{% embed url="<https://www.figma.com/design/ZeKsPDKAlmbYmc9JvJ16SY/INIT-Brand-Guideline---External?node-id=0-1&t=M4wSJBGosjqkYbri-1>" %}

{% embed url="<https://www.figma.com/design/FPBjgbTktJ5I05OKKMT3Mg/INFINIT-Brand-Guidelines-[EXTERNAL]?node-id=0-1&t=8Ie2WbwkIlwxdLIE-1>" %}

### Original

{% file src="/files/TQ9fNouBAaOv42gqZKPf" %}

{% file src="/files/ujdMGJImh8mvV6vU7zoh" %}

{% file src="/files/55h5XIpjAEejjXo0TSvD" %}

{% file src="/files/Axe3L7nvFBBkva3eBamx" %}

{% file src="/files/gIA5bIHoCBNQKPpnzPnL" %}

{% file src="/files/8mXpU2wl72qT7hs1mYM2" %}

### BW

{% file src="/files/lVDMv62YXUFqVcqpueCe" %}

{% file src="/files/Gh8AKu3uPAXJcT3UOFjl" %}

{% file src="/files/zgaNEt62MqaD3nOZuqBe" %}

{% file src="/files/rwFF9OElKMuohXDC7ThR" %}


# Terms of Use

{% file src="/files/BhvhpQySoNXrunbwq9ix" %}