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INIT Capital: Leveraging Eigen's Airdrop, Mantle Lending Market with Luxurious Financing Background.

Kaori

Read this article in 11 Minutes

Utilizing mETH to obtain ETH+EigenLayer+MNT+platform airdrop quadruple incentives on INIT.

Author: Kaori, BlockBeats

Editor: Jack, BlockBeats

Quietly, Mantle's TVL approaches $200 million, with a growth rate of 50% in the past month. The lending protocol INIT Capital in its ecosystem has seen a monthly growth rate of 383%, with a TVL exceeding $50 million and a borrowing activity volume of $30.79 million.

Liquidity is a key indicator for testing the activity of a chain, and lending protocols are the vanguard of a thriving ecosystem. Referring to the lending protocols Navi and Scallop in the Sui ecosystem some time ago, perhaps Mantle will also experience a wave of pleasing growth due to INIT Capital's coin issuance expectations.

INIT Capital completed a seed round financing of $3.1 million yesterday, led by Electric Capital and Mirana Ventures. Arthur Hayes, founder of BitMEX, and his family office Maelstrom, Robot Ventures, Nomad Capital, Tangent Ventures, Bankless Ventures, Selini Capital, and Faction also participated. This is a relatively ideal financing scale for a DeFi product.

In addition, INIT Capital also received funding from Mantle EcoFund in January this year, and together with 5 other ecological projects, received a total investment of $10 million. BlockBeats will provide a detailed introduction to INIT Capital's project mechanism and participation methods in this article, for readers' reference only.

Liquidity Hook, INIT's liquidity plugin

One of the biggest challenges facing DeFi protocols today is to guide initial liquidity and sustain liquidity to achieve growth. Although the DeFi landscape is constantly evolving with different borrowing and lending use cases, the architecture of lending protocols has not developed accordingly. This has led to DeFi protocols independently acquiring liquidity, with protocols spending a significant amount of native tokens to incentivize liquidity. This approach is not sustainable in the long run and can lead to fragmented liquidity.

Therefore, INIT Capital wants to create a new DeFi protocol that seamlessly integrates its Dapp with a large number of liquidity sources in a Money Market. However, the project is currently in its initial stage and only includes basic activities such as deposits, loans, and referral programs to earn points.

The second phase of the project is to update Liquidity Hook, which is key for INIT Capital to become an integrated liquidity lending protocol.

When INIT Capital updates Liquidity Hook, users can not only deposit and borrow, but also use the profit strategy provided by Liquidity Hooks on INIT to earn both profit and INIT points at the same time.

In the second phase, various vaults, leveraged LP/Farming, perpetual trading, margin trading, LSTFi and other DApps can build Liquidity Hooks by writing smart contracts, and integrate or "hook" them to INIT to obtain INIT's liquidity. DApps can enhance composability by using multiple positions (Multi-Silo Position), flash loans (Flash Borrow), LP tokens as collateral, and other methods.

Liquidity Hooks continue to play a critical role in strengthening the interrelated growth cycles created within INIT.

For example, if a user provides a loan to INIT, with the launch of Liquidity Hook, INIT can borrow liquidity from DApp. Another wave of users with borrowing needs can use the integrated protocol, which actually uses INIT; or users can directly use INIT. This leads to a higher borrowing APY on INIT, attracting more Lend users, resulting in higher TVL and more available liquidity for INIT. When there is sufficient liquidity, it will also attract more protocols to integrate Liquidity Hook to establish a growth curve.

INIT Capital Investment Returns Overview

INIT Capital's current asset list includes WETH/ETH, MNT, WBTC, USDT, USDC, USDY, and mETH. After the Liquidity Hooks feature is launched, it will also support wstETH and some UniswapV2 LP tokens.

As of the time of writing, the market size of INIT Capital has reached 82.38 million US dollars, with a total lending amount of over 30 million US dollars. It can be seen that the stablecoin APY yield on INIT is quite impressive, with USDT exceeding 20%.

As an ordinary user, the mETH deposited on the Mantle chain can not only enjoy the rise in ETH prices and receive MNT and mETH benefits, but also obtain INIT points. The points will be clearly displayed on the project's official website and will be exchanged for project tokens to receive airdrops.

Liquidity Hooks will be launched on February 28th, and more DEX and other DApps will be integrated into INIT Capital afterwards. According to the roadmap provided on the INIT Capital official website, the TBA of $INIT will be conducted in the third phase. Currently, the project is still in the first phase of borrowing and earning points, so there is still a lot of early participation space for users.

EigenLayer Airdrop Leveraged Strategy

mETH is currently the fourth-ranked LST on EigenLayer. mETH holders can receive an EigenLayer airdrop, which is a profitable strategy for INIT users.

The specific operation steps include:

1. Use Mantle's DEX Merchant Moe to purchase mETH in the ecosystem.

2. Go to the INIT Capital official website and connect your wallet, then select mETH.

3. Select "Deposit and Borrow", enter the amount of mETH you want to pledge, and choose the amount of WETH you want to borrow. Please note the health factor. If it is less than 1, it will be liquidated.

4. Then, exchange 0.5 WETH for mETH on Merchant Moe, and deposit this portion of mETH into INIT Capital. Repeat the above steps to maintain a healthy coefficient.