Injective is an open, interoperable blockchain optimized for DeFi applications with support for smart futures. It uniquely offers plug-and-play modules, including an order book and derivatives trading module, enabling any developer to easily and quickly launch financially viable applications. By combining smart futures capabilities, developers can build complex applications using cutting-edge protocols. Built on Cosmos-SDK, Injective utilizes a Tendermint-based proof-of-stake consensus mechanism for instant transaction finality while maintaining lightning-fast speeds. INJ serves as the Injective's native utility and governance token, playing a crucial role in protocol security, market maker and relayer incentives, and derivative collateral, among other aspects.
Technical Features of Injective
Injective Chain: A public blockchain network tailored for next-gen DeFi applications, leveraging Tendermint consensus. Core protocol logic is implemented through native modules on Cosmos-SDK and smart futures on CosmWasm.
Injective Bridge: Decentralized cross-chain bridging infrastructure with support for Ethereum and any blockchain-supporting IBC. It facilitates secure, decentralized bridging, supporting not only standard ERC-20 transfers but also arbitrary data transfer for novel cross-chain executions and smart futures interoperability with Ethereum. As an IBC-supporting blockchain, Injective allows bridging with any other IBC-supported blockchain, providing access to assets on hundreds of other blockchains.
Injective API Nodes: These nodes serve dual purposes: (1) acting as the protocol's data layer and (2) providing transaction relay services. API nodes serve as decentralized data layers for external clients, offering real-time indexing of data from the Injective blockchain. They also provide high-performance, low-latency APIs compatible with various use cases, including hosting UIs for applications like exchanges, programmatic trading, and high-frequency market making.
Injective dApps and Tools: As a fully decentralized protocol, Injective enables permissionless access to blockchain and dApps. Many dApps are currently built on Injective, with decentralized exchanges (DEX) being the most widely used. Helix, a popular dApp, is one of the fastest-growing decentralized derivative exchanges. Injective also supports other decentralized applications for insurance, prediction markets, binary options, etc.
CosmWasm Smart Futures
Injective offers a next-gen, highly interoperable smart futures platform based on CosmWasm, featuring advanced cross-chain capabilities. Applications built on Injective's smart futures layer gain access to powerful DeFi primitives, including on-chain liquidity, oracle price feeds, cross-chain bridging, and execution capabilities. Injective uniquely supports the ability to automatically execute smart futures, unlocking novel design spaces for decentralized and permissionless advanced applications.
Role of INJ Token in the Injective Ecosystem
INJ, as the native utility token, plays a crucial role within the Injective ecosystem. It is a scarce asset used for governance, token burn auctions, and staking on the PoS network.
Unique to Injective is the burning auction mechanism, where 60% of all fees collected from dApps are auctioned weekly through a buyback and burn mechanism. This contributes to a significant reduction in INJ supply over time, enhancing the overall value accumulation for the Injective ecosystem.
Use cases for INJ include, but are not limited to, protocol governance, capturing value from dApp fees, proof-of-stake (PoS) security, developer incentives, and staking. Details for each use case are elaborated below.
Protocol Governance: INJ token manages every component of Injective, including chain upgrades. Since the mainnet launch, the Injective community actively contributes to governance through DAO governance voting.
Protocol Fee Value Capture: 60% of all fees generated by dApps enter on-chain buyback and burn auctions to maintain the deflationary nature of INJ.
PoS Security: INJ is used for securing the Injective blockchain through the proof-of-stake mechanism. Validators and delegators can participate in staking.
Developer Incentives: 40% of fees generated by dApp users built on Injective directly incentivize new developers building on Injective, fostering a growing builder funnel.
Injective Market Overview
As of November, Injective processed over 347 million on-chain transactions, generating over 52 million blocks on the mainnet. It stands as the fastest blockchain in the Cosmos ecosystem, with a mainnet block time of 0.8 seconds and a TPS of 25,000. Gas fees paid by users on Injective to date are zero.
Since the mainnet launch, the cumulative trading volume of all exchanges built on Injective has surpassed $15.3 billion, with the total assets on the InjectiveChain exceeding $1.38 billion. DEXs on Injective traded over $1 billion, with a daily peak volume of $77 million on November 9. The most liquid markets are BTC and ETH perpetual futures.
Injective Background
Injective was incubated by Binance and is one of the eight projects incubated in the first phase of Binance Labs, receiving support from numerous investment institutions. While Binance was significantly impacted by SEC actions, the influence on the decentralized exchange Injective was limited.
Injective Protocol's co-founder and CEO, Eric Chen, graduated from New York University's Computer Science School, and the core team has a strong professional background, having worked at internationally renowned companies such as Open Zeppelin, Amazon, and hedge funds. Core team members graduated from prestigious institutions like Stanford University.
On July 29, 2020, Injective raised $2.6 million in a seed funding round led by Pantera Capital, with participation from QCP Soteria, Axia 8 Ventures, and others.
On April 20, 2021, Injective raised $10 million in a "party" funding round, with participation from Pantera Capital, Mark Cuban, and Hashed.
On August 10, 2022, Injective raised $40 million in a funding round, with participants including Jump Crypto and BH Digital.
In January of this year, Injective announced the establishment of a $150 million ecosystem fund to drive ecosystem development. The Injective ecosystem currently includes more than 20 projects such as Astroport, Celer Network, and Helix. In April, Injective announced a partnership with Tencent Cloud to support developers on Injective.
Injective Ecosystem Overview
Mito
Website: https://t.co/8d1w3vYrN3
X: https://twitter.com/MitoFinance
Mito is a protocol composed of smart futures-driven automated trading vaults. Each vault executes advanced trading algorithms, typically held by institutions and hedge funds, currently in early access. Mito comprises two key components: an automated strategy insurance vault for easy yield generation and a complex token launch platform. Through this innovative platform, users can access various trading strategies to generate profits when exploring new tokens in the cryptocurrency space.
Astroport
Website: astroport.fi
X: https://twitter.com/astroport_fi
Astroport is an AMM protocol that allows users to exchange or provide liquidity for cryptographic assets using various pool types, including Curve-style stablecoin exchange pools and UniswapV2-style constant product pools. Astroport leverages Injective's interoperable network to swap assets bridged from Cosmos or Ethereum and assets bridged from chains like Solana, Aptos, and Avalanche through Injective's recent Wormhole integration.
As Astroport is built on Injective, users can use Injective's interoperable network, bridging assets to InjectiveBridge and creating liquidity pools on Astroport. This allows users to become liquidity providers, earn rewards, and start trading in new markets.
Astroport brings significant advantages to the Injective ecosystem, originally built on Terra. After extensive analysis of major L1 networks, Astroport officially migrated its mainnet to Injective, becoming one of the largest AMMs in the Injective ecosystem.
Ninja Blaze
Website: blaze.ninja
X: https://twitter.com/NinjaBlazeApp
Ninja Blaze is a platform that utilizes blockchain technology to support various games, fundamentally changing the market and bringing complete transparency and honesty to players.
Ninja Blaze leverages the power of blockchain technology to create a gaming ecosystem prioritizing trust and integrity. One of the most significant challenges in the gaming industry is the lack of transparency in-game assets, transactions, and player interactions. Traditional gaming platforms often leave players in the dark, uncertain about the fairness of outcomes, the authenticity of digital assets, and the true value of their investments. Ninja Blaze aims to eliminate this ambiguity.
All games on Ninja Blaze are built on the Injective blockchain, offering players numerous benefits and conveniences. Additionally, each game is recorded on the blockchain, ensuring transparency and allowing anyone to verify the honesty of the game.
As of now, over 10,000 independent players have joined the platform, playing over 3,000 matches and ranking above 170,000 positions.
Injective Vision
Injective is pioneering a new decentralized economy with the goal of creating a more free and inclusive financial system. Injective effortlessly integrates plug-and-play primitives into any DeFi application, leading the way for a diverse ecosystem in the future.
By leveraging technological innovation to increase settlement and transaction execution in a highly decentralized, permissionless, and censorship-resistant manner, Injective is building a blockchain with the potential to revolutionize the industry as we know it.
For more analysis, please follow Aibit's media account for real-time updates! This article is for reference only, does not represent any position, and is not intended as investment advice. Investment is risky, caution should be exercised.
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