Inertia employs a unique dual-token model for its liquid staking tokens, designed specifically to optimize asset utilization in lending and yield farming scenarios. When staking INIT tokens through Inertia, users select one of two specialized Liquid Staking Tokens (LSTs)—each with different benefits:

  • nINIT (Native Liquid Token): nINIT is pegged 1:1 with INIT, maintaining a stable value that mirrors the underlying INIT token. Crucially, nINIT does not accrue staking rewards, which allows it to remain price-stable and ideal for use in liquidity pools and farming environments. Users who prefer immediate liquidity and active DeFi participation—such as farming or providing liquidity on DEX platforms—should opt for nINIT. By depositing nINIT into farming pools within Inertia, users can directly earn additional INRT token incentives.
  • sINIT (Yield-Bearing Liquid Staking Token): In contrast, sINIT continuously accumulates INIT staking rewards, effectively growing in value over time due to the staking yields. While less immediately liquid than nINIT, sINIT is perfect as collateral within the lending protocol, enabling users to earn staking rewards passively while simultaneously borrowing against the growing value of their staked assets. This structure lets users leverage their staked positions, borrow funds, and continue benefitting from staking returns simultaneously.