Just 40 minutes ago, @ KaitoAI announced a new project to airdrop to Yappers. Once again, thank you to @ Punk9277 @ InitCapital_ @ Infinit_Labs for the amazing milk After reading the white paper, I will quickly give you some extra lessons. What is this project I have seen many Chinese bloggers already on the leaderboard, and I believe they have written articles before. Impressive! For example: @ WY_mask Serious article begins - Initiat Capital: Becoming the 'Liquidity Linked Engine' for DeFi's New Infrastructure In the next stage of DeFi, we no longer just need "lending protocols", we need a truly composable and protocol serving liquidity infrastructure. This is exactly the problem that Initiat Capital wants to solve - it is not here to challenge Aave, but to replace the part of the protocol functionality that Aave cannot yet cover. 1、 What is Initiat Capital? INIT Initiat Capital is a liquidity hook money market protocol based on the Mantle Network, with the core concept of providing a flexible and pluggable funding system for DeFi protocols, so that the protocol no longer struggles to "pull funds for itself". let me put it another way: Initiat is a "liquidity switch" built for DeFi projects, providing a modular fund scheduling hub for the entire ecosystem. 2、 How does the growth flywheel of Initiat operate? Initiat has introduced a very beautiful growth closed-loop structure: ｜ 🔁 Liquidity Hook → Increased borrowing demand → Increased borrowing returns → More liquidity enters → More protocols are connected → Repeat the cycle. The specific process is as follows: 1. Lenders and lending vaults deposit funds into Initiat. 2. Construct a Liquidity Hook for the protocol, borrowing the liquidity of Initiat for its own strategy (such as market making, leverage, yield aggregation, etc.). 3. This will bring about two types of borrowing needs: When protocol users use the protocol, the backend borrows from Initiat through Hook; Users can directly call Hook on the Initiat platform to obtain policy benefits. 4. Rising borrowing demand → Increase in loan APR of Initiat → Attract more funds to deposit. 5. Increase the TVL and available liquidity of Initiat → attract more protocols to build Hooks. 6. Ultimately, a positive network effect is formed between the protocol, users, and funds. This is the true "growth engine" of the protocol layer. 3、 This is not Aave, this is a 'liquidity assembly plant' created for the protocol In the past, lending agreements such as Aave/Compound were designed to serve users - you save money, I borrow money, and earn some interest rate spreads. The Initiate direct service protocol itself allows any dApp to build a Liquidity Hook and use Initiate as a source of funding for its own strategy. You can understand it as: Initiat is DeFi's funding API, which is a foundational module rather than a terminal product. This architecture is the true form that will be needed for the future multi chain world+modular DeFi. Initiat has completed a seed round financing of $3.1 million, with investors including: 🧠 @ ElectricCapital 🧠 MiranaVentures 🧠 MaelstromFund 🧠 @ robotventures Leshner） 🧠 @ BanklessVC 🧠 Tangent_HQ 🧠 @ SeliniCapital 🧠 @ FactionVC And various industry OGs: Pendle founder @ tn_pendle Lee Ethena founder Guy Young Founder of Aevo @ juliankoh This is not just regular financing, it is a capital validation of the consensus that Initiat serves as the 'DeFi liquidity infrastructure'. Narrative keywords: Liquidity Infrastructure CompostableDeFi Initiat has identified the biggest narrative gap in DeFi currently: There is a lot of money, but the efficiency of fund utilization is low; The project wants to make efforts, but the funding threshold is high; The heat in the lending market has decreased, but demand has not been met. It no longer engages in short-term stimuli such as high APY deposit taking, but instead creates a protocol interconnected fund hub to help every dApp launch faster, safer, and more efficiently. This also aligns with the future consensus that DeFi is infrared first. INIT Capital = Protocol Liquidity Layer + Growth Flywheel + DeFi Native API I will personally continue to track the development path of Initiat and observe its integration with various protocols on Mantle. If you want to do Modular DeFi, you must understand the construction logic of Initiat. If you want to explore early Narrative Alpha, Initiate is one of the starting points of this wave. Welcome to follow the official website of Initiat: 👉 @ initcapitalxyz 👉 Official website: https://init.capital 👉 Docs： https://docs.init.capital/ @KaitoAI Kaito Yapper