Decentralized cross-chain DeFi provided What is Injective Protocol (INJ)?
New DeFi protocol
An article about the Injective Protocol and how its Bridge Smart Contract Development Services ecosystem works.
table of contents
What is injective?
Features of Injective (INJ)
Injective-provided products
Economics of deflationary tokens
Injective DAO Governance
Injective ecosystem
Ecosystem growth
What are the benefits of Build a cross chain bridge on an injective?
It has also been integrated with Ethereum (ETH) , Cosmos (ATOM) and Terra (LUNA) , and so far more than 7 million blocks have been generated on the mainnet. “Injective Pro” (an exchange built on Injective) has become the fastest exchange in history to achieve a trading volume of over $ 1 billion (about 115 billion yen) in the first month after its opening.
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1) What is injective?
As DeFi (decentralized finance) becomes more popular, there is an urgent need for infrastructure that can support a variety of DeFi apps. Injective is an interoperable layer 1 blockchain dedicated to building robust exchanges, DeFi, derivatives and web3 apps.
Features such as MEV (Miner Extractable Value) tolerance, immediate closing of transactions, decentralized orderbook infrastructure, Ethereum scaling, and zero gas bills are all essential features to bring the next billion users to DeFi. .. Injective is the only chain in the DeFi industry that can do this in the next 3–5 years.
What is MEV resistance?
MEV (Miner Extractable Value ) is a problem that the diversification effect diminishes when miners earn profits by using the price difference between various blockchains on the Ethereum ecosystem.
▶Cryptocurrency glossary
Injectives are built on the Cosmos SDK, so you can achieve immediate transaction finality while maintaining high speed.
Cryptocurrency (cryptocurrency) INJ is a native deflationary asset that underpins the injective protocol and its ecosystem. Injective is the first Binance-sponsored (incubated) project sponsored by Pantera Capital. Other investors include Hashed, DRW Cumberland, BlockTower, CMS, Figment, Sandeep Nailwal (Polygon COO), Mark Cuban and many others.
Related: Ethereum founder Buterin “It is possible to achieve both censorship resistance and scalability”
2) Features of Injective (INJ)
Injective is a layer 1 blockchain with unique features such as:
The only interoperable blockchain with a native decentralized orderbook infrastructure that can support all financial primitives (spots, perpetual contracts, indexes, etc.)
Full MEV resistance due to injective chain consensus mechanism
Expanded Ethereum functionality
Cosm Wasm and EVM (Ethereum Virtual Machine) smart contract layer for innovative apps
Realize DeFi apps that cannot be realized with other chains
Support for Ethereum native tools
Cheaper fees than Ethereum, and over 1,000 times faster than Ethereum
Related: Ontology announces completion of development of its own EVM (Ethereum virtual machine)
3) Injective products
Currently, Injective has a large number of products, all of which are deployed on the blockchain dedicated to DeFi transactions.
“Injective Pro” is a fully distributed open source orderbook relayer built on the injective protocol. One of the fastest growing DeFi exchanges, five community members manage relayers.
“Injective Bridge” is a reliable Cross chain bridge development that natively supports Ethereum, Cosmos and Terra. Over $ 150 million in assets were processed through the bridge in the first two months after the launch of the mainnet. In 2022, integration with new layers such as Solana (SOL) is planned.
The Injective Hub offers injective tools such as staking dashboards, INJ burn auctions, wallets, insurance funds, and comprehensive governance portals.
“Injective Explorer” is an analysis platform for injective blockchain.
4) Economics of deflationary tokens
INJ is a native deflation token that powers injective protocols.
One of the features approved by the injective community is “token burn “. The mechanism is that 60% of all fees generated by trading activities across the protocol are sent to the auction, the user bids on the fees at INJ, and the paid INJs are burned. Currently, Injective boasts the highest token burn ratio in the industry.
Related: Ethereum, currency incineration amount exceeds 100 billion yen
INJ tokens empower community members to control the future of injectives while providing security to the network through a consensus mechanism called the Proof of Stakes (PoS). Typical native features of INJ tokens include:
Protocol Governance: INJ tokens manage all components of the injective, including chain upgrades and new asset listings available for the protocol. The injective community actively contributes to governance, and all proposals are passed by a truly decentralized governance vote.
Gaining Value for Protocol Usage Fees: To maintain INJ deflation, 60% of all fees incurred from decentralized exchanges ( dApps ), bridges and transactions are put up for on-chain buyback and burn auctions. ..
Tendermint-based Proof of Stake (PoS) Security: INJ protects the chain with a proof of stake mechanism via validators and delegates.
Developer Incentives: 40% of the fees incurred by dApps users will go directly to new exchange relayers using incentives and developer incentives.
When the smart contract layer goes live in 2022, more dApps will be launched injectively, accelerating the overall protocol revenue and burn process. As a major example of token usage in the future, a global merging system that will start operation in 2010 is envisioned.
5) Injective DAO governance
Injectives are run by a community-run DAO.
Each protocol-level upgrade, platform activity, and exchange listing goes through a voting process, allowing INJ token holders to be directly involved in the future of the protocol. All suggestions in the community can be found here.
Related: What is the mechanism and future potential of DAO (Decentralized Autonomous Organization) | Contributed by Nansen
6) Injective ecosystem
Injective is one of the fastest growing exchange ecosystems through collaboration across diverse industrial sectors.
Many dApps and protocols such as Terra, including exchange apps built on injectives, are also integrated with injectives.
7) Ecosystem growth
Injective Labs is one of the contributors to the Injective Protocol and already supports several major projects.
These projects will be rolled out injectively after the launch of the smart contract layer. Some examples of its role are:
Burnt Finance: An injective-backed NFT marketplace that has raised a total of $ 11 million from Animoca, Alameda, Multicoin and others.
Rift Finance: Injective-supported DAO liquidity infrastructure protocol that raises $ 18 million from Pantera, Two Sigma and others.
Frontrunner: A sports betting platform led by four graduates of the University of Pennsylvania, USA.
These have a total private value of over $ 250 million in less than a year.
Injective exchanges like Picasso also raise money from major market makers such as Cumberland and QCP. Huobi, one of the world’s largest exchanges, is also building the exchange dApps on the injective.
8) What are the benefits of building on an injective?
Injective is the only blockchain designed specifically for cross-chain transactions, derivatives, DeFi and Web3 apps.
Injectives are ready to become a common destination for DeFi ecosystem builders around the world. Already owning one of the fastest growing exchange apps in history, it provides a great deal of peace of mind to developers looking to deploy injective.