The projects listed on Binance Launchpad had a very successful year last year. Typically, projects such as MATIC or ALPHA have had a very high ROI since their launch.
Today's article will introduce you to Injective Protocol, a project that is also listed on Binance Launchpad. So, what exactly is this project? How does it function? What information about this project should we pay attention to? This article will give every piece of information you need to know.
What is Injective Protocol?
Injective Protocol is a decentralized cross-chain derivatives trading and permissionless DeFi platform. The platform supports CFDs, perpetual swaps, and other derivatives. The protocol's tech stack accelerates trade execution and settlement on layer-2 while remaining fully decentralized. Because Injective is completely decentralized, anyone can create and trade derivatives markets.
When building an infrastructure for quick cross-chain trade with no gas fees, the platform makes use of both the Ethereum and the Cosmo ecosystems via peg zones This project's mission is to create a network that is trustless and can be independently verified by anyone.
In order to achieve this objective, the project includes the following unique features:
- Decentralized layer-2 derivatives platform: Allow users to use derivatives trading at layer-2 decentralization speed with no gas fees.
- Market Creation: The ability to trade on any derivative market using simply a price feed is provided by Injective, which opens up new opportunities for traders to explore.
- Support Cross-Chain and Yield Generation: A wide range of trade and yield generation activities can be supported by Injective across layer-1 blockchain networks.
- Complete Governance System: The network of Injective will be governed via a Decentralized Autonomous Organization (DAO) structure, in which new listings and network updates are all voted on by the decentralized community.
How does Injective Protocol work?
The Injective Protocol has four key components:
- Injective Chain.
- Injective's smart contracts on Ethereum.
- Injective API nodes.
- Injective front-end interface.
Injective Chain operates as a completely decentralized sidechain relayer network. The Tendermint consensus method is used by Injective Chain, and Cosmos-SDK modules implement the protocol's essential logic. This is achieved by combining the Injective Futures Protocol and conventional smart contracts.
The Injective Futures Protocol is a Cosmos-SDK-based application. Trade decentralized perpetual swap contracts and CFDs on any market using this protocol.
The Injective Chain provides an EVM-compatible execution environment for DeFi apps, as well as a two-way Ethereum peg-zone for ETH and ERC-20 token transfers. The peg-zone is built on Peggy, and Ethermint executes EVM.
Smart contracts on Ethereum
The Injective Protocol is a token-based protocol tied to the INJ token. As a result, the smart contracts implemented protocol interactions and token economics.
There are four several type of smart contracts with different purposes include: Injective Coordinator Contract, Staking Contract, Injective Futures Contracts, Injective Bridge Contracts and Injective Token Contract.
Transaction relay services are provided by injective API nodes, and the data layer for the protocol is provided by injective API nodes.
Decentralized protocol Injective Protocol makes it possible for anyone to use the protocol without requiring prior permission.
For interacting with the protocol, Injective offers a user-friendly front-end interface that may be operated locally or hosted on a web server by both people and businesses. The InterPlanetary File System uses this interface as well (IPFS).
These tools provide a decentralized peer-to-peer exchange, which is nothing new, but the features added to the ecosystem setting the Injective Protocol distinctive.
The project is using Tendermint-based Proof-of-Stake (PoS), which allows for cross-chain derivative trading between Cosmos, Ethereum, and other layer-1 protocols. It also allows for staking and delegating rewards.
Because the Injective Exchange's underlying software is open-source, it can be thoroughly audited to filter out bugs and security flaws. The exchange infrastructure has removed the normal technological obstacles to admission.
What is the INJ token?
Injective Protocol's native token, INJ, serves as both a utility and a governance token. It's critical to governance, derivatives collateralization, protocol security, market maker and relayer incentives, and capturing the value of exchange fees, among other factors.
- Governance: Using a DAO framework, the INJ token may be used to govern many components of Injective's sidechain, such as the futures protocol, exchange settings, and protocol upgrades.
- Exchange Fee: Following the distribution of relayer rewards, the exchange fee will be subjected to an on-chain buy-back-and-burn event to generate value for INJ.
- Collateral Backing for Derivatives: Derivatives markets will use INJ as collateral rather than just stablecoins. Token holders can earn interest on their INJ by staking them in insurance pools.
- Security for Tendermint Proof-of-Stake: Tendermint-based PoS consensus secures Injective Protocol. The ecosystem compensates staking nodes for participating in network consensus. This method inflates the INJ token supply, which starts at 7% per year and lowers to 2% over time.
- Market Maker Incentives: The Injective DEX charges 0.1 percent for manufacturers and 0.2 percent for takers. Market makers that help build liquidity on the DEX trading platform get fee reductions.
Detailed information about INJ Token
INJ Token Metrics
- Token Name: INJ Token.
- Ticker: INJ.
- Blockchain: Ethereum.
- Token Standard: ERC-20.
- Contract: 0xe28b3b32b6c345a34ff64674606124dd5aceca30
- Token type: Utility, Governance.
- Total Supply: 100,000,000 INJ.
- Circulating Supply: 32,655,553 INJ.
INJ Token Allocation
- Ecosystem Development: 36.33%.
- Team: 20%.
- Private Sale: 16.67%.
- Community Growth: 10%.
- Binance Launchpad Sale: 9%.
- Seed Sale: 6%.
- Advisors: 2%.
INJ Token Sale & Schedule
How to buy INJ token
Coin98 Exchange is a decentralized exchange (DEX), a Multi-chain liquidity aggregator that offers users a wide variety of DeFi services (swap, stake, lend, borrow,...) through intuitive and simple interfaces.
Therefore, you can use Coin98 Exchange to swap other tokens for INJ token following these simple steps on: https://exchange.coin98.com/
Step 1: Connect to the Coin98 Extension Wallet.
Step 2: Select Uniswap (Ethereum).
Step 3: Choose coins/tokens for trading:
- Search INJ.
- If the result does not come up, you can paste the contract of INJ into the search box: 0xe28b3b32b6c345a34ff64674606124dd5aceca30
Step 4: Adjust the amount you want to swap.
Step 5: Adjust the gas fee, then click Approve.
How to mine INJ
How to store INJ
You can store INJ token on Coin98 Wallet with these steps:
Step 1: Open Coin98 Wallet & click Receive on the home screen.
Step 2: Search INJ Token.
Step 3: Click on the correct result, copy the wallet address and send INJ to this address.
Roadmaps and Updates
- Release of public testnet V2.
- Release of Incentivized Staking Competition and Ethereum bridge.
- Launch of mainnet V1.
- Implementation of bridges to multiple blockchain networks.
- Adding liquidity mining (yield farming) and staking incentives.
- Swapping of token, from ERC-20 to native chain.
- Launch of 10+ perpetual swaps and expiry futures.
- Launch of cross-chain yield generation.
- Launch of DAO governance for community-governed listings and market creation.
- Launch of staking pools on insurance funds.
- Launch of institutional exchange interface.
- Launch of crypto-backed traditional financial derivatives.
- Team, Investors, and Partners
Team, Investors & Partners
- Eric Chen - CEO & Co-Founder: Former Innovating Capital researcher, former Splash product manager, NYU Stern School of Business bachelor's degree
- Albert Chon - CTO & Co-Founder: Former Amazon Software Development Engineer, Open Zeppelin Consultant, Stanford Parallel Distributed Processing Lab Researcher, and Stanford University Master of Science.
Some Injective Protocol's partners: Razor Network, Polkadot, Chainlink, Kava, Ocean Protocol,…
Is INJ a good investment?
This article has provided some of the main ideas related to the INJ token and its implications. There is no financial advice in this post because it is intended to give you a thorough understanding of the project
However, it is important to note that there are a few key points that investors should take into account before making investment decisions:
The project elevates derivatives trading. Unlike most contemporary DEXs, Injective can keep order books while maintaining security and speed. Because it is decentralized and permissionless, Injective improves overall safety and operability. Layer-2 scaling allows INJ to have enough throughput to facilitate trading transactions.
Traditional CEXs have issues that injective protocol solves while maintaining the innovative elements. The project offers zero trading fees which is a big bonus for traders who use exchanges frequently.
As a layer 2 protocol, the project's ecosystem is diverse and still growing. In Q4 2021, the project will launch its DAO. With users moving towards the DAO system, this is a good sign for the development of the project.
The Canary Chain mainnet launched in June 2021, will improve the scalability of the Injective Protocol by incorporating a multi-chain functionality. This will allow the project to compete directly with current competitors such as dYdX and Perpetual Protocol.
I hope you have gained all of the important information about INJ including its features and highlights throughout this topic.
If you have any questions about INJ or want to know more about INJ, please feel free to leave a comment below and join Coin98 Community for further discussions about Crypto.