LP Tokens as Collateral

INIT Capital’s modular structure enables users to collateralize their LP positions to borrow assets against it. This allows users to continuously earn trading fees and farming rewards while borrowing. Read more.

Standing out from other protocols, INIT has modes for different types of LP tokens to be used as collateral. These modes allow LP Token as collateral and borrow factors to be set, with consideration of all risks involved (smart contract risk, economic risk, etc.).

Tech Infrastructure

To enable LP Tokens as Collateral, the unmanipulated LP token price needs to be identified. This requires a mathematical representation of the LP token’s underlying asset prices.