When the initial trading pair is set up, the value of the ETH added (in USD) will be the same value as the total amount of the project tokens.
Say you created a pair for your new project called ART; you added $1000 worth of ETH and 1000 ART tokens. This would give you an initial price of $1/token. If you borrowed an additional $9000 worth of ETH from the lending pool and added that to the initial liquidity, you would now have $10,000 worth of ETH paired with 1000 ART tokens, which will give you an initial price per token of $10.
All projects launch with different tokenomics. In most cases, project creators will hold a portion of tokens in reserve; this could be for the team, advisors, marketing, etc.
If you launched your project with 10x the liquidity by borrowing funds from the Lending Pool, then your initial token price will be 10x the price had you not borrowed liquidity. This will give the tokens that you held in reserve a much higher initial value.
“The whole reason to build a leveraged DEX is to enable those without large capital, access to institutional scale capital”
An initial liquidity offering “lowers cost to launch a project, increase liquidity, and reduces the amount of capital locked to a pair”