Phase 2: Liquidity Hook Now LIVE — Explore Diverse Yield Opportunities and Earn INIT Points Starting with Looping Hook
Hook, Deposit, Borrow, or Refer to Accumulate Points and Unlock Rewards #LiquidityHookEra
Overview
Phase 2: Liquidity Hook is now live with more ways for you to earn yield and INIT points: Hooks!
INIT Capital appreciates everyone’s participation in Phase 1, which helped INIT achieve a market size of $98 million and become the largest TVL on the Mantle Network.
In Phase 2, similarly to Phase 1, participation in DeFi activities on INIT earns you points. However, INIT has introduced an additional way for you to earn points in Phase 2 known as ‘Hook’ (aka yield strategies).
In this phase, the focus is placed on Liquidity Hooks. Utilizing Hooks will yield more points compared to solely engaging in Depositing and Borrowing, as you will earn points from all three components: Hook, Deposit, and Borrow. Read on to see how this works.
What’s Available at Phase 2 Launch: mETH Looping Hook
Throughout this phase, you can accumulate INIT points by utilizing Hooks. The first Hook available on INIT is the ‘mETH Looping Hook’, which allows you to earn points alongside depositing, borrowing, and referring.
There are several DExes and DeFi protocols that INIT is closely working with to build Hooks.
- Available Hook: $mETH Looping Hook with up to 5X leverage.
$mETH Looping Hook creates leveraged mETH exposure through borrowing ETH and swapping from ETH to mETH in a single click. Users are no longer required to execute this strategy manually.
We’ve integrated with 3 DEXes: Merchant Moe, Agni Finance, and FusionX to route the best price for you when converting ETH to mETH.
See how the Looping Hook works below.
- Upcoming Hooks: Margin Trading Hook, Pair Trading Hook
Earn INIT Points Through Deposit, Borrow, and Hook
Why Earn INIT Points? INIT Points serve as a means to reward your continuous contributions to the INIT ecosystem. The more you contribute, the more points you can earn and get rewarded for your significant contribution to INIT’s success.
A few rules have been changed from Phase 1, with the same goal of rewarding users who contribute to INIT’s success.
Here are 3 key DeFi activities to earn points on INIT. Engage in all to maximize your points:
- Deposit: Deposit in INIT’s lending pools to earn 1 INIT point for every $100 value lent per 24 hours.
- Borrow: Borrow from INIT’s lending pools to earn 5 INIT points for every $100 value borrowed per 24 hours.
- Hook (New): Utilize Hooks on INIT to earn points from all three components — Hook, Deposit, and Borrow — and therefore yield more points than just engaging in depositing and borrowing alone.
The calculation of INIT points for Hook users will differ from others and will utilize a dynamic mechanism in which the criteria for points will be regularly updated. The calculation method will remain undisclosed to deter users from gaming the point system.
Hook user points will be processed every two weeks on Wednesday and reflected on the user interface by Friday. INIT Capital reserves the right to adjust these point distributions at its discretion.
For example,
User A opens an mETH Looping Hook position with 5x leverage, using 1 ETH as collateral (assuming 1 ETH = $3,000).
INIT will detect user activity as:
- Deposit ~5 mETH (5x or $15,000)
- Borrow 4 ETH (4x or $12,000 of $ETH)
Hence, User A will receive points from 3 ways:
- Earn points from Depositing: 1 point/$100 per 24 hours
• Deposit ~5 mETH ($15,000) = 150 points per 24 hours - Earn points from Borrowing: 5 points/$100 per 24 hours
• Borrow 4 ETH ($12000 at 1 ETH = $3,000) = 600 points per 24 hours - Earn points from utilizing mETH Looping Hook in which the points will be updated biweekly.
While User B manually deposits 5 mETH and borrows $12,000 USDT, they will not earn INIT points from Hook, but only from depositing and borrowing.
Guide to Opening Looping Position on INIT
- Go to the ‘Hook’ tab, where you can select your Collateral asset (currently only WETH and mETH are available) and choose the ‘mETH Looping Hook’ option.
- Deposit either ETH or mETH and select leverage level.
- Check Health Factor before opening position. If the Health Factor drops to 1 or below, liquidation will be triggered.
- INIT will automatically select the DEX that offers the best price for converting ETH to mETH.
- Approve token and then click ‘Open Looping Position’ to open position.
Earn 10% More Points Through Referrals
Refer your friends to participate in the INIT Point system to earn 10% of the points earned by every member you refer to from depositing and borrowing activity, excluding the Hook part.
Remember, as long as your referee continues to earn points (e.g., by holding positions or opening new positions), you, the referrer, will continuously receive 10% of their points. Additionally, if your referee refers to another member, you will receive 10% of the 10% your referee earned (equivalent to 1%).
To make a referral, simply post your invitation code with the hashtag #LiquidityHookEra on Twitter.
For example,
- User A refers INIT to User B.
- User B makes 100 INIT points per 24 hours.
- User A will get 10 INIT points for referring User B.
- User B then refers INIT to User C.
- User C deposits $10,000 USDT and receives 100 INIT points.
- As a result, User B will get 10 INIT points, and User A will get 1 INIT point.
About INIT Capital
INIT Capital is built as the liquidity hook money market that streamlines the process for both end users and dApps. INIT aims to function as the liquidity layer, facilitating DeFi activities (lending, borrowing, and yield strategies) for users and fostering use cases for dApps to build on top of. With INIT as the base liquidity layer, users can seamlessly access and manage yield strategies from dApps through INIT.
INIT is essentially where dApps and users meet, with access to unified liquidity and without the need to look elsewhere.
