Glossary

Loan-to-Value Ratio (LTV)

The LTV ratio measures how much a user can borrow relative to the value of their collateral. This is a measure that is determined by the lending protocol entity, and may depend on the risk profile of the particular asset.

Collateralized Amount

The value of hINJ tokens locked in the Loop Stake vault as collateral to enable recursive borrowing. This amount determines the user's borrowing capacity under the protocol’s defined LTV ratio.

Example : When 100 hINJ is used as collateral with a 75% LTV, the protocol allows borrowing up to 75 INJ.

Borrowed Amount

The total INJ tokens borrowed using hINJ as collateral throughout the Loop Stake process. This amount compounds with each iteration, increasing the user's staking base.

Max Cap

A protocol-defined upper limit that governs critical parameters within Loop Stake operations. This includes the maximum number of recursive loops (e.g., 5 iterations), maximum allowable LTV (e.g., 75%), or total borrowable INJ per user. The Max Cap is implemented by the Hydro Team.