• Unlock Staked Value: Borrowers can unlock liquidity from assets that would otherwise be locked in staking. By using LSTs or LRTs as collateral, a borrower continues to earn staking rewards (via their sTokens) while getting access to borrowed funds. For instance, someone holding restaked ETH (represented as an LRT) can post it as collateral and borrow stablecoins, effectively getting liquidity without giving up future ETH staking earnings.
  • Flexible Liquidity for Various Needs: Inertia offers borrowers access to stablecoins and other assets against their collateral at fair, algorithmic interest rates. This is useful for yield farming, trading, or personal expenses. A borrower might take a stablecoin loan against staked INIT to invest in a new opportunity, or conversely borrow an asset like INIT using stablecoin collateral to gain exposure, all without selling their original holdings.
  • Leverage and Strategy: Experienced users can utilize Inertia to implement leverage. A borrower could borrow and restake in cycles (e.g., stake INIT → get sINIT → borrow more INIT with sINIT → stake again) to amplify their staked position. This leveraged staking increases potential rewards (as more INIT is staked earning yield) while the protocol ensures the health of the loan via proper collateral ratios. Similarly, one could borrow assets to enter leveraged yield farming positions on external platforms. Inertia’s integration of these functions under one roof simplifies what would otherwise be a complex, multi-step strategy.
  • Competitive Interest Rates and Efficient Markets: Because Inertia pulls liquidity from many sources and optimizes asset use, borrowers benefit from competitive interest rates and deep liquidity. The presence of yield-bearing collateral can make borrowers less sensitive to interest costs (since their collateral is earning), creating a more efficient market. Additionally, the protocol may adjust interest rates algorithmically to balance supply and demand, giving borrowers clarity and potentially lower rates on popular pairs.