Crypto Gloss

Neptune Finance

Neptune Finance is Injective’s primary money market protocol — offering Aave-style overcollateralized lending and borrowing for INJ, USDT, USDC, wBTC, wETH, and other Injective-chain assets, with NEPT as the governance token and a liquidation system integrated with Helix Exchange’s orderbook for efficient collateral liquidation.

Overview

Neptune Finance launched on Injective mainnet as the essential money market layer for the Injective DeFi ecosystem — providing the lending primitive that turns the trading-focused Injective chain into a more complete DeFi platform. While Helix handles trading and Mito handles automation, Neptune serves as the capital efficiency layer: users earning trading profits on Helix can deposit idle capital into Neptune to earn lending yield; traders can borrow against collateral to open leveraged positions on Helix. The Injective integration enables Neptune’s liquidations to execute against Helix’s order books, creating a closed-loop ecosystem.

Core Features: Money Market

The main features are described below.

Supply (Lending)

  • Deposit USDT, USDC, INJ, wBTC, wETH, stINJ, and other supported assets
  • Earn variable supply APY based on utilization curve
  • Receive nTokens (Neptune’s interest-bearing deposit receipt) representing deposit + accrued interest
  • nTokens composable within Injective DeFi (use as collateral, trade, etc.)

Borrow

  • Post supported collateral → borrow up to the asset’s LTV ratio
  • Variable borrow rate tracking utilization
  • Health factor monitored; liquidation triggered if below minimum
  • Borrow USDC/USDT to buy more INJ (leveraged long); borrow INJ to short on Helix

Helix-Integrated Liquidations

A key Neptune feature: liquidations execute against Helix’s order books

  • When a position becomes undercollateralized, Neptune liquidation bot sells collateral on Helix
  • Benefits: deep liquidity available through Helix CLOB for efficient price
  • No reliance on external liquidation market (the Helix depth is the liquidation venue)

stINJ Collateral

Neptune accepts stINJ (staked INJ liquid staking token) as collateral:

  • Users can: stake INJ → receive stINJ → deposit to Neptune as collateral → borrow USDC
  • Effective staking yield offsets borrowing cost (stINJ earns staking while collateralizing)
  • Similar to liquid staking strategies on other chains (stATOM on Mars, haSUI on NAVI)

NEPT Token

NEPT is Neptune’s governance token:

  • Governance — new collateral additions, LTV parameters, interest rate model changes
  • Staking — staked NEPT receives a portion of protocol interest revenue
  • Liquidity mining — NEPT emissions to suppliers and borrowers as incentives
  • Fee discounts — staked NEPT reduces borrow rates for holders

Sources

Related Terms