Init

INIT Capital is a decentralized finance lending and borrowing protocol built around the idea that liquidity should be broadly accessible to both individual DeFi users and to protocols. Its central concept is the 'Liquidity Hook': an integration mechanism through which decentralized applications can connect to INIT's money market and draw on its pooled liquidity rather than bootstrapping and incentivizing liquidity on their own. The protocol frames this as an answer to a structural problem it identifies in DeFi, namely that conventional money markets lack composability, which caps protocol growth, pushes new protocols to source liquidity independently, and leads them to spend large portions of their native token supply on liquidity incentives, fragmenting liquidity in the process.

The platform documents lending and borrowing features including asset lists, deposit mechanics, lending APR, lending and borrow caps, health factor, minimal liquidation, an interest rate model, flash borrow, auto e-mode, and a debt ceiling. Distinctive features highlighted in its documentation include flash borrow, multi-silo positions, the use of LP tokens as collateral, and the use of yield-bearing tokens as collateral. Borrowers can access Liquidity Hooks built by dApps to pursue multiple yield strategies through a single INIT dashboard, while lenders are positioned to earn higher lending APR as integration partners draw on liquidity and expand the user base. Documentation also covers developer resources for building Liquidity Hooks, contract addresses, oracle details, and audits. INIT's documentation indicates the protocol was planned to operate on the Mantle Network.

Business model

INIT operates as an on-chain money market: depositors supply assets to earn lending APR, borrowers draw against collateral (including LP tokens and yield-bearing tokens) subject to caps, health-factor and liquidation rules governed by an interest rate model, and third-party dApps integrate as liquidity consumers via Liquidity Hooks.