INIT Growth Loop

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

1. Lenders and lending vaults lend to INIT.

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.