Injective: blockchain created for finance

Injective was launched in June 2021. It is a blockchain focused on decentralized financial applications and built using Cosmos SDK and Tendermint architecture. Injective is compatible with EVM, which provides a cross-chan between Ethereum, Moonbeam and Cosmos ecosystem.

Injective was the first blockchain on Cosmos, offering a fully decentralized infrastructure of an exchange glass that allows developers to use liquidity and launch DAPP, for example, spot and derivative exchanges.

Team, sponsors

Injective Labs was founded Eric Chen and Albert Chong In 2018. He was supported by Binance Labs in 2018 and has since attracted $ 52.6 million in three separate rounds.

Injective has attracted $ 2.6 million as part of the initial round conducted by Pantera Capital with the participation of Qcp Soteria and Axia8 Ventures. Injective has attracted 10 million dollars in the framework of the round of funding, which was attended by Pantera Capital, Mark Kyuban, Hashed, and T.D. Injective has attracted $ 40 million in round with Jump Crypto and BH Digital.

Architecture

As mentioned earlier, Injective was built using Cosmos SDK and Tendermint consensus architecture. This allows Injective to configure and optimize its architecture for its main product – DEX exchange glass. Here We examined in detail the architecture of the blockchain Cosmos.

Due to the rate of completion of Tendermint transactions and an optimized network – the locking of the lock is approximately 2.3 seconds – Injective can support the high -performance DEX infrastructure with a centralized limit exchange glass (Clob) in the network. Injective uses a FBA model that performs orders in accordance with priority for a certain period of time, an interval of auction that works well with a low block time.

It is interesting to note that although on August 16, 2022 Injective increased its maximum set of validators from 25 to 40 validators, no change in the block time has occurred. At the time of writing, the block time was actually reduced to approximately 1.9 p, which indicates that perhaps optimization was carried out.

Safety

Injective spent audit their spawning and derivative code bases along with Informal Systems in 2021. Five minor problems were found and subsequently eliminated and subsequently eliminated. However, after updating Helix, its new DEX interface, no additional checks were carried out.

Injective did not publish any rewards on Immunefi, but he accepts applications for remuneration directly from the community.

Tokenomics

Native token Injective, Inj, used to ensure network security, pay for gas and management commission and control. The total proposal of INJ is 100 million tokens, and it can eventually increase due to inflationary emission from remuneration for the block. The target level of inflation was set at 7% at the beginning of the year and over time should decrease to 2%. At the time of writing, inflation was set at 5% in accordance with Proposal 59.

Inj has a deflation mechanism in which 60% of the protocol revenues from the exchange commission are sold in exchange for Inj, which is then burned. It turns out that if the exchange commission increases so much that the burned inj will exceed inflation, Inj may be in deflationary.

Inj is also used as providing derivatives in the markets and insurance pools on Injective, which further increases the demand for token.

Injective was prepared by Binance Labs, and 9% of its offer was sold at the Binance launching pad at a price of $ 0.4 during an estimate of $ 40 million and did not have a blocking period. Sales and sowing distribution graphs can be seen below.

According to the above schedule for the release of tokens, the entire proposal of tokens in the amount of 100 million will be fully provided by January 2024.

Review of the ecosystem

Injective is a public blockchain, respectively, developers can run DAPP on the network after their proposal is approved by management. At the time of writing the article on Injective, six trading DAPPs operate, including Injective its own DEX – Helix. The remaining five DAPPs are clones of the DEX base interface, which does not give the network greater value. This shows only the decentralization of the trade interface.

Frontrunner

At the moment, Frontrunner is a dough, which is a decentralized market for sports forecasts. When buying shares of the corresponding team, users make bets on the outcome of the event, for example, a match between two teams. A promotion for the team is created when the order for purchase on both sides reaches 1 dollar, this means that the prices of assets of this event are always equal to 1 dollar. Users can create both market and limit orders that are paid within 24 hours from the date of the event.

Currently, the protocol supports bets on the main baseball league and is working on the addition of new sports leagues and market types in the future. At the time of writing this article, Frontrunner tested 400 unique traders, and almost $ 100 million in transactions of more than 30,000 orders at the closed https://gagarin.news/ access stage passed through it.

Helix

Helix-Injective advanced product, it is a completely network Clob Dex with such functions such as zero gas, sport and unlimited markets, as well as stop-limit orders. Helix, as it is built on Injective, supports Cosmos, Ethereum and Moonbeam assets. At the time of writing the article, Helix supports 18 markets with spot and unlimited offers.

Additional conditional orders

With a new Helix update, offers warrants with a stop loss. This function is usually found only on centralized exchanges due to its complexity and inherent risks inherent in smart contracts. This gives a Helix advantage over competitors and can attract traders who want to repeat the experience of CEX trading on the network.

Protocol performance

Since the launch of the trading, Helix exceeded $ 7.25 billion, most of which (about 90%) falls on the markets of unlimited contracts. Surprisingly, over the past month, the volume of spare trade has exceeded the volume of unlimited contracts.

However, Injective sales volumes are significantly lagging behind such competitors – GMX and DYDX. Last month, Injective trade amounted to about $ 100 million, while GMX and DYDX – $ 5.9 billion and $ 34 billion, respectively. Nevertheless, Dydx has trade incentives, which can explain significant leadership in volume.

Conclusion

Despite the fact that since the launch of Injective has observed a significant amount of trade, there were not enough Defi products on the network. Nevertheless, Injective Labs, which recently attracted $ 40 million, reported their intention to continue to create Defi applications and not only in Helix. They aimed at forecasting markets, lending protocols and savings protocols to contribute to the growth of institutional implementation.

Recently, investors have been departing from the inflationary profitability of Defi, which was encouraged by AMM and YILELD FARMING, and move to a more “adult” Defi, which supports protocols and projects focused on real profitability. This should cause the growth of the Clob Dex sector, which provides a platform for the financial products that we saw in Tradfi – for spoke trade and trading derivatives, as well as for cash markets.

Despite the fact that Injective has established themselves in the Cosmos ecosystem, they have to try to catch up with famous competitors – GMX, Synthetix and Dydx. In addition, they have to fight with players such as Kujira, SEI and other Cosmos competitors who go on stage.

If Injective succeeds in achieving his goal of developing Defi innovation in his network, he can hope for further success and increase the implementation. We will follow Injective and its development.

Warning: Bybit employees can be involved in some or all tokens and projects mentioned in the article. This statement prevents any conflict of interests and is not a recommendation to purchase any token or participate in any of the mentioned ecosystems. This content is intended exclusively for introductory purposes and should not be accepted as an investment council. Please study this issue well and be careful if you plan to participate in any of these projects.