A second-layer cross-chain ecosystem called the Injective Protocol (INJ) is active. The network is distinctive in that it allows users to securely trade derivatives across decentralised networks. To facilitate DeFi onboarding and offer a competitive alternative to the CEX (centralised exchanges) that now dominate the market, the Injective Protocol was developed.
Some of the key concepts about the INJ token and its ramifications have been presented in this article. This essay is not designed to provide financial advice; rather, it is meant to provide you with a comprehensive overview of the project.
But it’s crucial to remember that there are a few crucial factors that investors should consider before making investment decisions:
The initiative enhances trading in derivatives. Injective can maintain order books while retaining security and speed, unlike the majority of modern DEXs. Injective increases overall safety and operability because it is decentralised and permissionless. Layer-2 scalability enables INJ to have sufficient throughput to support trading operations.
Injective protocol addresses the drawbacks of conventional CEXs while keeping the novel aspects. For traders who routinely utilise exchanges, the project’s $0 trading fees are a huge perk.
The project’s ecology is varied and still expanding as a layer 2 protocol. The project will introduce its DAO in Q4 2021. Users turning to the DAO system is a positive sign for the project’s advancement.
The Canary Chain mainnet, which went live in June 2021, will add multi-chain features to the Injective Protocol, increasing its scalability. As a result, the project will be able to compete directly with existing rivals like dYdX and Perpetual Protocol.
Team, Investors & Partners
Team
Eric Chen, CEO and co-founder, holds a bachelor’s degree from NYU Stern School of Business and was a product manager at Splash and an Innovating Capital researcher.
Former Amazon Software Development Engineer, Open Zeppelin Consultant, Stanford Parallel Distributed Processing Lab Researcher, and Stanford University Master of Science holder Albert Chon serves as CTO and co-founder of the company.
Investors
Partners
Razor Network, Polkadot, Chainlink, Kava, Ocean Protocol, and others are some of Injective Protocol’s partners.
How to buy INJ token
Decentralized exchange (DEX) and multi-chain liquidity aggregator Coin98 Exchange provides users with a variety of DeFi services (swap, stake, lend, borrow, etc.) through user-friendly and straightforward interfaces.
As a result, you can utilise Coin98 Exchange by doing these easy steps at https://exchange.coin98.com/ to exchange other tokens for INJ token.
Connect to the Coin98 Extension Wallet in step one.
- Choose Uniswap (Ethereum).
Step 3: Select your trade coins or tokens
Look up INJ.
You can paste the contract for INJ into the search box if the desired result does not appear: 0xe28b3b32b6c345a34ff64674606124dd5aceca30.
Step 4: Modify the quantity you want to exchange.
Step 5: Modify the gas tax, then select OK.
How to store INJ
These steps can be used to store INJ token on Coin98 Wallet:
Open Coin98 Wallet and select Receive from the home screen in step 1.
- Look up INJ Token.
Step 3: Select the appropriate result by clicking on it, copy the wallet address, and send INJ to that address.
What is the INJ token?
The native token of Injective Protocol, INJ, functions as a governance token as well as a utility token. Incentives for market makers and relayers, protocol security, governance, derivatives collateralization, capturing the value of exchange fees, and other aspects are dependent on it.
Governance: The INJ token can be used to control a variety of Injective’s sidechain’s elements, including the futures protocol, exchange preferences, and protocol updates, using a DAO framework.
Exchange Cost: To create value for INJ, the exchange fee will be put through an on-chain buy-back-and-burn event after relayer rewards have been sent out.
Derivatives markets will employ INJ as collateral rather than merely stablecoins as a backer for their derivatives. Holders of tokens can invest their INJ in insurance pools to earn interest on them.
Tendermint-based PoS consensus protects the Injective Protocol, providing security for Tendermint Proof-of-Stake. Staking nodes receive rewards from the ecosystem for taking part in network consensus. The INJ token supply is inflated using this manner; it starts off at 7% annually and decreases to 2% over time.
Market Maker Rewards Manufacturers pay 0.1 percent, while takers pay 0.2 percent, when using the injectable DEX. Fee reductions are given to market makers who increase liquidity on the DEX trading platform.
Injective Chain
As a fully decentralised sidechain relayer network, Injective Chain runs its operations. Injective Chain implements the core logic of the protocol using Cosmos-SDK modules and the Tendermint consensus technique. The Injective Futures Protocol and traditional smart contracts are combined to achieve this.
The Injective Futures Protocol is a Cosmos-SDK-based application. Use this protocol to trade decentralised perpetual swap contracts and CFDs on any market.
The Injective Chain offers a two-way Ethereum peg-zone for ETH and ERC-20 token transfers, as well as an EVM-compatible execution environment for DeFi apps. Peggy serves as the foundation for the peg-zone, and Ethermint runs EVM.
Smart contracts on Ethereum
A token-based protocol connected to the INJ token is called the Injective Protocol. As a result, token economics and protocol interactions were realised using smart contracts.
Injective Coordinator Contract, Staking Contract, Injective Futures Contracts, Injective Bridge Contracts, and Injective Token Contract are four different types of smart contracts with various uses.
API Nodes
The data layer for the protocol is provided by injective API nodes, which also offer transaction relay services.
Front-end Interface
Dispersed protocol Anyone can use the protocol thanks to Injective Protocol since no prior authorization is necessary.
Injective provides a user-friendly front-end interface for interacting with the protocol that may be run locally or hosted on a web server by both individuals and organisations. This interface is also used by the InterPlanetary File System (IPFS).
These tools offer a peer-to-peer exchange that is decentralised, which is nothing new, but the features that have been added to the ecosystem make the Injective Protocol stand out.
The project makes use of Proof-of-Stake (PoS) on the Tendermint platform, which enables cross-chain derivative trading between Ethereum, Cosmos, and other layer-1 protocols. Additionally, it enables staking and reward delegation.
The open-source software that powers the Injective Exchange can be rigorously examined to weed out defects and security holes. The typical technological barriers to entry have been eliminated by the exchange infrastructure.
What Problems Does Injective Protocol (INJ) Solve?
The Injective Protocol (INJ) aims to address a number of problems that continue to plague market consumers and developers. One is that the system was designed from the ground up to be simple for anyone to use. The protocol achieves this goal by giving users a comfortable set of features and designs.
Lack of Scalability
Scalability issues are a significant problem that the Injective Protocol also aids in reducing. Congestion on a blockchain network might make it extremely expensive to carry out smart contracts. A good illustration of how DeFi users can slow down a decentralised network and increase costs is Ethereum.
The Injective Protocol uses blockchain technology and consensus developments to offer consumers excellent scalability. The peer-to-peer protocol has the ability to carry out complex trades in a matter of seconds.
Lack of Options
The absence of several fundamental elements, including stop loss, that traders who trade in the DeFi sector have been accustomed to employing, frequently leaves them disappointed. A number of features that are typically only found on large CEXs are integrated into the Injective Protocol. These services offer choices like trading in derivatives, FX futures, and cross-chain margin transactions.
Lack of Interoperability
The absence of interoperability in the DeFi industry is a significant worry for developers as well. Every Defi network functions as its own financial island. Developers have to do a lot of work that is duplicated as a result of this compartmentalization. They are forced to design duplicates that stifle market innovation rather than exploiting solutions that are currently in use and are shown to work.
Users from different blockchain networks are brought together by the Injective Protocol so they can securely trade information and value. As part of this tactic, this system can facilitate interactions between private and public blockchains. It thus gives developers the tools they need to make more engaging Dapps.
High Fees
High gas costs are another problem that has dealers looking for new procedures to utilise. The most well-known networks, like Ethereum, have significant gas costs as a result of unprecedented congestion. Users find it challenging to take advantage of the network’s features and services due to these prices. Additionally, they deter developers from building intricate Dapps because doing so may be too expensive for customers.
By introducing trade services with zero gas fees, the Injective Protocol gets rid of these problems. To do this task, the network uses an improved Proof-of-Staking (PoS) consensus process. Because PoS networks do not require miners, they are more scalable.
Benefits of Injective Protocol (INJ)
The Injective Protocol has many advantages that can be reaped. The network provides users with a highly adaptable decentralised cross-chain protocol. You benefit from borderless trading options, cheap fees, and cross-chain capabilities. Over sovereign blockchains, these services can be used.
Flexibility
It is simple for those who want to create on the Injective Protocol to accomplish so. The method is designed to make it simple for you to create any cryptocurrency or artificial market of your choice. These systems enable frictionless and permissionless user setup and interaction, which enhances the ecosystem’s usability as a whole.
Passive Income
The Injective Protocol’s options for passive revenue are one of its key appeals. Tokens can be staked by anyone to guarantee low-risk passive profits. Because there is no chance of losing your initial asset when using staking, it is a great option for inexperienced traders. Additionally, you may use the staking calculator option to see exactly what your returns will be when you stake.
Developer-Centric
The Injective Protocol was developed with the goal of creating robust inter-chain DeFi applications. The system offers financial and technical support in the form of assistance for these initiatives. It is simpler to code with the Injective Protocol than with networks from earlier generations.
How Does Injective Protocol (INJ) Work
The Cosmos blockchain is the foundation for the Injective Protocol. It works as a sophisticated Layer 2 programme that lets users design fresh, cutting-edge financial markets. The system combines a new coin, a reactive DEX with several special features, and much more.
DEX
The potent DEX lies at the heart of the Injective Protocol experience. The Injective Protocol differs from most rivals thanks to its property. Derivatives, forex futures trading, and cross-chain margin trading are all supported by the exchange. These attributes are all uncommon in the DeFi industry. Even 20x leverage is an option for trading.
Injective Protocol (INJ) – Cross-Chain Bridges
The protocol’s cross-chain capabilities are another stronghold. Without using additional technologies, you can access cryptocurrency via platforms like Polkadot and Ethereum. These systems use robust smart contracts to facilitate value exchange across decentralised networks.
Consensus
To maintain its validity, the Injective Protocol uses a PoS consensus process. The PoS technology used in this system is based on Tendermint, which offers more scalability and improved security against network breaches. One of the segments of the crypto market with the quickest growth is PoS networks. In many ways, these networks improve on PoW systems like Bitcoin.
The reduction in energy consumption is one of a PoS network’s biggest benefits. PoS networks do away with miners, which lowers the overall amount of energy needed to maintain these networks. Due to their lower carbon footprint, PoS networks like the Injective Protocol are a greener choice for traders.
INJ
For the injective protocol, INJ serves as the primary utility token. Traders can send value around the world with this multifunctional token. The network can permit international trading without requiring approval. You can also stake INJ to get passive returns. The token is essential for users as a reward token.
Because it enables traders and DeFi users to take recently gained rewards and use them to boost future ROIs, this technique is perfect for them. You may, for instance, add your staking benefits to your subsequent stake. This strategy establishes a wealth generating cycle. The best part is that, unlike trading, there is never any chance of losing your initial assets as a result of market volatility.
How to Buy Injective Protocol (INJ)
The following exchanges currently sell Injective Protocol (INJ), which can be purchased.
Bitstamp is one of the oldest and most reputable exchanges in the world. It was founded in 2011. Residents of the United States, with the exception of Alabama, Hawaii, Idaho, Louisiana, Nevada, and New Jersey, are currently welcome to participate in this exchange.
Best for much of the world, including Australia, Canada, Singapore, and the UK, is Binance. It is not possible for Americans to purchase Injective Protocol (INJ). 10% off all trading costs can be obtained by using the promotional code EE59L0QP.
Over 300 more well-known tokens may presently be traded for cryptocurrencies on KuCoin. It frequently offers purchase opportunities for new tokens initially. Residents of the United States & other countries are currently accepted in this exchange.
WazirX – As a member of the Binance Group, this exchange is held to a high level.
The Injective Protocol (INJ)- A combination of Features that are Sure to Please
Regular and large institutional investors can benefit from the Injective Protocol’s special combination of features. The ability to trade derivatives makes the network more accessible to widespread adoption by established trading firms. Thus, the network provides services to a developing niche market in the DeFi industry. As a result, it’s likely to see increased acceptance in the future.
