Injective Protocol (INJ) logo
Injective Protocol (INJ) logo

Injective Protocol (INJ) Review

Expert Review
Oct 23, 2020

Injective Protocol describes itself as the first layer-2 DEX that unlocks the full potential of decentralized derivatives and borderless DeFi.

The Injective Chain is implemented as a Cosmos SDK module, built with Ethermint (EVM on Tendermint). It utilizes a Tendermint-based Proof-of-Stake to facilitate cross chain derivatives trading across Cosmos, Ethereum, and many other layer-1 protocols. In addition, the protocol is collision resistant and utilizes Verifiable Delay Functions (VDFs) to prevent front-running.

How does Injective Protocol work?

INJ is the token utilized on Injective and was launched via a public offering in 2020, becoming the first project backed by Binance Labs to debut on Binance Launchpad. The use cases intended for INJ include but are not limited to: protocol governance, exchange fee value capture, derivatives collateralization, liquidity mining, and staking.

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The Injective platform enable users to take part in decentralized cross-chain derivatives trading with zero gas fees while also being able to access cross-chain yield generation for a multitude of assets. Due to how the platform is governed by a DAO structure, Injective enables everyone to create and trade on any derivative market with only a price feed, thereby opening up more opportunities for trading on markets not found on other exchanges.

Some of Injective Protocol's key elements include:

  • Layer-2 decentralized derivatives trading: Injective is able to achieve fast trading speeds while charging zero gas fees.
  • Trade on any market: Injective allows anyone to create and trade on any derivative market using only a price feed, thereby opening up many opportunities for trading on markets not found on other exchanges.
  • Cross-chain trading and yield generation: Injective is capable of supporting a diverse array of trading and yield generation activities across distinct layer-1 blockchain networks.
  • Community driven network governance: Injective’s network will be governed by its decentralized community in which new listings or network changes are all voted on a Decentralized Autonomous Organization (DAO) structure.
  • Liquidity mining incentives: Injective’s community will be able to capture value via liquidity mining programs that have been natively built onto the network to spur continuous growth.

Injective is backed by the likes of Binance, Pantera, Hashed in the blockchain industry.

The opinions and assessments expressed in the text are the views of the author of the article and may not represent the position of Cryptogeek. Do not forget that investing in cryptocurrencies and trading on the exchange is associated with risk. Before making decisions, be sure to do your own research on the market and the products you are interested in.
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