What is Injective Protocol (INJ)?

The Injective Protocol (INJ) is a blockchain that is primarily active in the decentralized finance (DeFi) and derivatives industries. In other words, the Injective Protocol is a dynamically adaptive DeFi protocol for cross-chain derivatives trading, using various financial products such as perpetual swaps, smart contracts, and spot trading. Injective’s goal is to provide users with truly decentralized and free commercial transactions.

This blockchain leverages both the Ethereum and Cosmos ecosystems on anchors to establish a convenient cross-chain transaction infrastructure without gas costs. The purpose of the Injective Protocol is to create a trusted, censorship-free, and publicly verifiable network.

Advantages and Disadvantages

Advantages

• Financial derivative instruments based on blockchain technology

• Continuation of traditional centralized exchanges

• A detailed white paper and a clear roadmap

• Support for many exchanges, no matter how big or small

Disadvantages

• The INJ token is highly volatile.

• Some technical problems when using the trading terminal

Highlights of Injective

The Injective Protocol supports not only derivatives and swaps but also contracts for difference (CFDs). The main activities of the entire core ecosystem are also to help facilitate DeFi token trading and create liquidity pools. Thanks to the ecosystem’s two-tier architecture, Injective users can trade multiple tokens for almost free.

The following are the key elements of the Injective Protocol ecosystem:

• Injective Chain: a chain of protocols that ensures the operation of blockchain applications, token transactions, etc.

• Injective Futures Protocol: a smart contract-based protocol that any user can use to create derivatives markets as well as trade unlimited amounts.

• Injective Exchange: a DEX for investors to trade coins with each other.

• Internal governance: a system to manage and control the ecosystem and user community.

Besides, the INJ token still has some other functions, such as:

• Payment of fees for transactions

• Voting and Protocol Administration

• Asset guarantee for derivatives.

• Build insurance groups for users.

• Maintain the ability to receive passive income.

Some notable features

The Injective Protocol was built in 2018 and has become the first decentralized layer 2 exchange protocol capable of unleashing the full potential of decentralized derivatives and DeFi. The project is also a launchpad for decentralized cryptocurrency exchanges that are fully supported by derivatives such as CFDs, perpetual swaps, etc.

Not only that, the platform also establishes an environment compatible with EVM, DeFi applications, and a separate department for transferring Ethereum standard tokens to the Injective Protocol. The Injective Order Book operates completely decentralized on a 0x basis. This allows users to transfer orders in the sub-chain with payments in the main chain.

Here are a few key functions of the Injective Protocol:

• Chain of Consciousness: The infrastructure to power the next generation of DeFi applications This is where users can rest assured that they can exchange because of its complete decentralization, including order books, order matching, and a decentralized environment that coordinates transaction execution.

• Injective Futures Protocol: A peer-to-peer futures protocol that supports indefinite decentralized swaps and contracts for difference (CFDs). From there, users will be able to create custom derivatives markets as well as trade through the price channel.

• The infrastructure opens the door for users to exchange completely freely, eliminating unnecessary technical barriers to participating in transactions on an electronic exchange.

• Internal governance: The Injective Protocol is governed by the community through the use of INJ tokens. Anyone can join the project and have a say in making good decisions for the protocol.

Information about the INJ token

Token name: INJ token
Ticker: INJ
Blockchain: Ethereum
Token standard: ERC-20
Contract: Address 0xe28b3b32b6c345a34ff64674606124dd5aceca30
Token type: Utility, Governance
Total supply: 100,000,000 INJ

Token allocation

With the above total supply, INJ tokens are allocated to the following sources:

Ecosystem development: 36.33%
Team: 20%
Private sale: 16.67%
Community growth: 10%
Binance launchpad sale: 9%
Seed sale: 6%
Advisors: 2%

Token use case

INJ is the native token of the Injective protocol and is used for the following purposes:

• Users can participate in the governance of the Injective project by voting. Each INJ token entitles the holder to one unit of voting power. The more INJ tokens are owned, the more voting power a user has.

• After distributing a part of the reward to the relayer, the remaining amount collected from trading fees on the exchange will be used to buy-back-and-burn as well as accumulate more value for the INJ token.

• In the Injective project, the Inj token is used as collateral and margin for derivatives markets. some futures markets, INJ tokens can also be used for staking into insurance pools for additional income.

• Rewards in the form of INJ tokens for those who provide liquidity to the project through Liquidity Mining.

• Injective encourages INJ Stake Nodes to participate in the Injective Network’s secure network and receive block rewards in the form of INJ tokens.

Roadmap

Injective completed Phase 1 in June 2021. Currently, the project is in Phase 2 of Mainnet.

After the mainnet milestone, next will be the launch of Canary Chain Spot Trading with a few initial trading assets including: INJ, SUSHI, LINK, USDT, USDC, AAVE, etc.

In the future, the project will add more markets through administration.

Project Team

Two prominent names investing in Injective are also big names in the crypto space: Binance and Patera.

Besides, on April 20, 2021, Injective once again successfully raised capital in the amount of $10M with the participation of a series of big names such as Mark Cuban, Pantera Capital, Hashed Ventures, BlockTower, CMS Holdings, and QCP Capital.

In addition, the project also has two major partners: Razor Network for Oracle and Kardiachain for blockchain connectivity.

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