Injective is one of the most thoughtfully structured chains in crypto. Built for slightly more advanced crypto users, Injective provides reliable DeFi services to the crypto industry.
This L1 blockchain is protected through a strong and diversified network of API nodes, as well as by its native token INJ, which contributes to securing the network through staking and governance procedure.
Injective specializes in five unique areas to deliver an all-encompassing finance package. They are:
[1] Interoperability.
[2] Permissionless derivatives trading.
[3] Quality DeFi applications.
[4] Community Governance.
[5] Smart Contract capabilities.
(MEV) Maximal Extractable Value
One of Injective’s focal points is interoperability.
Interoperability – “The ability of different blockchain networks to exchange and leverage data between one another while accounting for the unique programming of digital assets, information, and technologies between the respective blockchains involved.”
Integrating two or more blockchains that are uniquely designed is no small task, and is exactly why a lot of decentralized exchanges cannot compete with major exchanges due to the sheer amount of complications involved.
This however, is Injective’s gold mine.
Injective fuses several technologies to create self-reliant and secure cross-chain bridges:
Self-executing Smart Contract technologies.
Oracle price feeds.
Adapted bridging and executing code to facilitate a range of diverse blockchains.
Real-time API nodes.
Guaranteed token burn/mint procedures.
Injective has outsourced liquidity for its DeFi applications using Interoperability to access liquidity on other chains. This helps keep their chain fees low while liquidity volumes are high, with the average transaction fee being lower than $0.01.
The real value comes with Injective’s incredible High trade volume through (but not necessarily on) the blockchain, which correlates to plenty of liquidity on hand. So where does all this liquidity come from? Not only is the liquidity on Injective shared across most – if not all – of its applications, but Injective shares cross-chain accessibility to the Ethereum network, Binance, Cosmos, Polkadot, Polygyon, Solana, Chainlink, and a lot of smaller L1 and L2 chains , putting it in the top 3 blockchains in terms of provided liquidity (topping both Ethereum and Binance). The only blockchains with better access are both Layer Zero ecosystems – Polkadot and Cosmos. This makes Injective an ideal home for DeFi users, with its villa-style network of cross-chain assets available at any time.
Injective also accepts a decent range of wallets too, including MetaMask, Ninji, Keplr, Ledger, Trezor, Torus, Leap, and Cosmostation.
Ease of Use Challenges
The native token – INJ – is no gimmick token either, rather, it was created with a purpose.
It is first and foremost a deflationary token, with a total limit of 100 million tokens (≈85 million in use now). This is to ensure governance operations and incentives do NOT become warped or insignificant. The deflationary cycle of INJ goes like this:
60% of dApp fees are auctioned off weekly in a buy-back-and-burn mechanism > The supply of INJ decreases > Value for the entire INJ ecosystem is accrued and pushes the token value north > Rinse and repeat ^
Injective has an established DAO Governance model that votes on all upgrades, proposals, and changes.
The remaining 40% of dApp fees are gifted to new developers building on Injective to incentivize building out the ecosystem with quality protocols and applications.
INJ is also used as the sole utility token on the network, and the preferred token when bridging. Thanks to scaling solutions and Injectives interoperable model, INJ is usually the cheapest option to use anyway.
INJ staking is synonymous with “Security system” on Injective. The consensus mechanism requires validators to stake INJ to secure the network, which earns them rewards for doing so. In the unlikely event a stakeholder acts maliciously towards the network, their stake is automatically lost.
How Intents Solve The UX Issues
User customization.
Censorship resistant as it operates using its Governance structure and leverages permissionless smart contracts.
incredibly intuitive developer experience, providing access to a variety of tools to make the development experience flexible in order to not hinder application building.
Excellent token distribution.
MEV resistant.
Environmentally friendly blockchain that reduces its carbon footprint to almost nil, credit due to its Tendermint PoS consensus mechanism.
Yield Generation tools.
The ability to create and deploy your own Smart Contracts.
The Simple Process Of Intent-centric Protocols
Volan is a new upgrade adding another niche of finance to the blockchain’s already stacked list. Volan is a software module built around Real-world Assets (RWA), and is the very first of its kind.
The goal is to provide institutions and individual users access to a range of real-world products, such as tokenized fiat currency pairs, treasury bills, and exclusive credit products.
The Volan upgrade expands the Inter-Blockchain Communication (IBC) protocol on Injective in order to enhance interactions with other chains. This upgrade also enables complex cross-chain transactions, including advanced order routing and swaps.
“This Injective Volan Mainnet upgrade is focused on providing developers with unmatched native building blocks for next-gen finance applications while simultaneously improving connectivity to other blockchains and applications.” – Eric Chen, CEO of Injective Labs.