Initia combines a Layer 1 chain with an interconnected system of customizable Layer 2 rollups, called Interwoven Rollups. This setup allows developers to launch their own app-specific chains with full-stack customizability, while staying connected to the broader ecosystem. The Initia L1 itself is built on the Cosmos SDK but uniquely integrates the MoveVM, enabling the use of Move smart contracts. Initia also tightly integrates foundational infrastructure like LayerZero for messaging and Celestia for data availability, along with built-in oracles, indexers, and native USDC support.
At the heart of Initia is its Enshrined Liquidity mechanism designed to overcome the limitations of proof-of-stake and rollup networks—most notably, the trade-offs between security and liquidity. Typically, in most PoS networks, users must choose between staking their tokens to secure the network and earn rewards or using them to provide liquidity for trading. This creates a dilemma: more staking boosts chain security but limits the availability of assets for liquidity, and vice versa. Enshrined Liquidity removes this trade-off by allowing liquidity positions on InitiaDEX, specifically in INIT-token pairs approved by governance, to double as staking assets with validators. In other words, users can stake their LP tokens and still earn trading fees—while also supporting network security and receiving staking rewards.
The INIT token is used for gas fees across both L1 and L2s, and also serves as the base asset for liquidity pools that fuel cross-chain trading.
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