INIT Capital on Blast: Liquidity Hooks and points mechanics
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Explains INIT Capital's Phase 2 on Blast: Liquidity Hooks let dApps tap its liquidity permissionlessly, and the Orbit Farming Hook lets ETH and USDB lenders stack Blast rewards and INIT points. Cites $61M TVL on Mantle and point rates per $100.
Key claims
INIT has $61M TVL and is the largest protocol in the Mantle ecosystem
1 INIT point per $100 deposited daily, 5 per $100 borrowed
80% of Blast Gold shared to depositors, 20% to borrowers
My main bet on @Blast_L2 is @InitCapital_, a Money Market that provides composability elements democratize liquidity access for both dApps & users through Liquidity Hooks.
Originally deployed on @0xMantle, my thesis for INIT on Blast is the same as on the first @eigen_da-based execution layer.
INIT already is the leading money market protocol in Mantle's emerging ecosystem and boasts a TVL of USD 61M. It is the largest protocol by value locked. With Blast, the team has identified another emerging, high-growth ecosystem to establish itself as a key piece of DeFi infrastructure.
Recently, @InitCapital_ launched its Phase 2 on @Blast_L2 and that comes with opportunities for you to position yourself for a potentially huge airdrop. 🪂
⚡️ What can I do on INIT?
On @InitCapital_ you can now:
✦ Deposit (and earn points)
✦ Borrow (and earn points)
✦ Refer (and earn even more points)
✦ Hook (Liquidity Hooks new with Phase 2)
⚡️ Wait, what are Liquidity Hooks again?
Liquidity Hooks are a plugin for liquidity on @InitCapital_.
With Liquidity Hook, dApps can easily integrate with INIT and access INIT's liquidity fully permissionlessly.
In the form of the Orbit Farming Hook, the first is now available for users on Blast!
⚡️ Okay, but why do I care?
The Orbit Farming Hook allows ETH and USDB lenders to create Hook positions by borrowing an in-kind asset on @OrbitLending and lending it on INIT, users can maximize their Blast rewards and get INIT points as well as the deposit APY on INIT.
⚡️ What do I do exactly?
Phase 2 of INIT offers three DeFi activities to earn points and rewards:
1️⃣ Depositing ETH/USDB:
✦ Earn 1 INIT point per $100 deposited daily
✦ 1.6x boost for opening positions, +10% every 7D
✦ Share 80% of Blast Gold based on TVL / duration
✦ Blast Points are based on deposit & pool utilization
2️⃣ Borrowing ETH/USDB:
✦ Earn 5 INIT points per $100 borrowed daily
✦ Share 20% of Blast Gold based on TVL
✦ Earn Blast Points by holding assets on Blast
3️⃣ Utilizing Hook:
✦ INIT Points details are pending
✦ More Hooks to be announced soon
⚡️ Let's look at an example:
By borrowing 1 ETH and depositing it back, a user gets:
✦ 300 INIT points daily for the deposit
✦ Initial 1.6x boost for Blast Gold, increasing by 10% every 7D
✦ Blast Points based on pool utilization
⚠️ Note: Borrowed tokens from @OrbitLending won't earn rewards, as they aren't from INIT's pool.
Definitely worth checking out if you're looking to position yourself within the @Blast_L2 ecosystem while also getting exposure to the upcoming @0xMantle Season.
A tokenless protocol with over USD 60M TVL and live in two high-potential ecosystem is definitely something to DYOR on. 🪂
With the upcoming Margin Trading and Pair Trading Hooks, I expect things to get even wilder. 🚀
Stay tuned. 👀
QUOTING @InitCapital_
Phase 2: Liquidity Hook on Blast has begun! Orbit Farming Hook, the first Hook on Blast is now available exclusively for $ETH and $USDB lenders on @OrbitLending to maximize your Blast rewards and earn INIT points. See how to make more gains but no pain with INIT🧵 t.co/n
Phase 2: Liquidity Hook on Blast has begun! Orbit Farming Hook, the first Hook on Blast is now available exclusively for $ETH and $USDB lenders on @OrbitLending to maximize your Blast rewards and earn INIT points. See how to make more gains but no pain with INIT🧵 t.co/n