INIT Capital: Liquidity Hooks money market as a DeFi summer shovel play
Thread718 words
Makes the case for INIT Capital, a money market whose Liquidity Hooks act as permissionless plugins for leverage staking, looping and margin trading. Cites 25x TVL growth year to date and walks through point farming hooks on Blast and Mantle. Includes a referral link.
Key claims
TVL grew from $10M in January to $257M including $109M in outstanding loans, over 25x YTD
weETH looping hook earns 10x EtherFi points, 5x Blast Gold, 5x EigenLayer points
I'm an infrastructure investor.
Tʜᴀᴛ ᴍᴇᴀɴs ɪɴ ᴀ ɢᴏʟᴅ ʀᴜsʜ, I ʙᴇᴛ ᴏɴ ᴛʜᴇ ɢᴜʏ sᴇʟʟɪɴɢ ᴛʜᴇ sʜᴏᴠᴇʟs, ɴᴏᴛ ᴛʜᴇ ᴏɴᴇ ᴅɪɢɢɪɴɢ ғᴏʀ ɢᴏʟᴅ.
However, as we are on track to enter a historical bull market, my search for plays like this expands to the upper layers of the stack.
Meet one of my (few) main DeFi bets for a DeFi summer gold rush.
Meet @InitCapital_. 👇
🧠 𝗧𝗲𝗰𝗵 𝗧𝗟𝗗𝗥
@InitCapital_ is a Liquidity Hook Money Market that provides composability elements democratize liquidity access for both dApps & users.
Recognizing that liquidity scarcity hampers the growth of DeFi protocols, INIT Capital has developed a money market solution that emphasizes composability.
Liquidity Hooks, inspired by Uniswap V4 Hooks but tailored for money markets, enhance flexibility and open up new possibilities for DeFi applications.
Liquidity Hooks act as plugins for liquidity on the @InitCapital_ platform, enabling dApps to implement advanced strategies such as leverage staking, farming, margin trading, and pair trading without the need for native tokens.
dApps developing strategies can easily build Hooks by writing their smart contracts to integrate with INIT and access INIT’s liquidity fully permissionlessly.
Key features of @InitCapital_ include multi-silo positions, ensuring independent risk management for each lending and borrowing position, and a unique flash borrow mechanism that allows users to return different assets as collateral within a single transaction.
Additionally, INIT supports the use of LP tokens as collateral, fostering diverse yield strategies and attracting protocols like GMX and Pendle.
This innovative approach increases borrowing demand on two fronts:
✦ Users of integrating protocols that utilize INIT under the hood
✦ Users directly leveraging Liquidity Hooks on INIT.
As a result, higher lending APYs attract new users seeking high yields, creating a continuous cycle of growth and positive feedback loops within the INIT ecosystem.
🎯 𝗧𝗵𝗲 𝗕𝘂𝗹𝗹 𝗖𝗮𝘀𝗲
INIT Capital's strength lies in a capable team, which stays in touch with market trends and its uniquely versatile product suite.
This enables @InitCapital_ to dynamically launch Liquidity Hooks to align with the hottest market narratives (e.g. leveraged point farming for the most anticipated airdrops using INIT hooks).
They have also successfully positioned themselves as early movers in emerging ecosystems like @0xMantle and @Blast_L2, which could be epicentres of the upcoming bull run.
This strategic foresight has already paid off, with INIT's Total Value Locked (TVL) skyrocketing from $10 million in January to $257 million (incl. $109M in outstanding loans), marking a >25x increase YTD.
This is just the beginning though.
INIT serves both end users through its intuitive UI and ecosystem projects with its Hooks, making it a unique hybrid "app layer x infra" play in the DeFi space.
This dual functionality not only enhances user experience but also provides critical infrastructure support for other DeFi applications.
The team's ability to consistently ship products that achieve product-market fit keeps attention levels high and users engaged, something that only few protocols manage to achieve.
As the DeFi space heats up, INIT is set to be the "guy selling the shovels" during the DeFi summer gold rush.
By providing essential tools (Liquidity Hooks) to both end users and DeFi applications, I can see @InitCapital_ continuing to capture substantial TVL and user volumes, which will ultimately lead to significant fee revenue and subsequent value accrual to the platform and hopefully token holders.
🤑 𝗛𝗼𝘄 𝘁𝗼 𝗴𝗲𝘁 𝗶𝗻𝘃𝗼𝗹𝘃𝗲𝗱
As I have mentioned before, @InitCapital_ offers some great point farming opportunities.
Next week, the $weETH Looping hook will go live that allows you to earn:
✦ 10x @ether_fi Points
✦ 5x Blast Gold
✦ 5x @eigencloud Points
✦ 7.5x INIT Points
Could be one to consider anon.
Alternatively the $USDe Looping Hook, which is the newest Looping Hook on Blast, could be an option:
✦ 100x @ethena Sats
✦ 5x @Blast_L2 Gold
✦ 7.5x INIT Points
Other than that, @InitCapital_ recently launched the INIT Margin Trading Hook with @ThrusterFi.
If you're trading on @Blast_L2 this means additionally to your trading PnL, you also earn:
✦ Blast Points
✦ Blast Gold
✦ 3x INIT Points
✦ Thruster Credits
👇 𝗜𝗳 𝘆𝗼𝘂'𝗿𝗲 𝗹𝗼𝗼𝗸𝗶𝗻𝗴 𝘁𝗼 𝗴𝗲𝘁 𝘀𝘁𝗮𝗿𝘁𝗲𝗱, 𝘂𝘀𝗲 𝘁𝗵𝗲 𝗹𝗶𝗻𝗸 𝗯𝗲𝗹𝗼𝘄! 👇
🔗 t.co/ER1is3MhJV
☝️ 𝗜𝗳 𝘆𝗼𝘂'𝗿𝗲 𝗹𝗼𝗼𝗸𝗶𝗻𝗴 𝘁𝗼 𝗴𝗲𝘁 𝘀𝘁𝗮𝗿𝘁𝗲𝗱, 𝘂𝘀𝗲 𝘁𝗵𝗲 𝗹𝗶𝗻𝗸 𝗮𝗯𝗼𝘃𝗲! ☝️
🅽🅵🅰 & 🅳🆈🅾🆁
🚨 Correction: The $weETH Looping Hook is already live too! Farming madness on INIT.
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