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Mar 31 • 25 tweets • 9 min read Twitter logo

@Injective_

The future is now!
Having being incubated and raised sizeable amounts of capital, #INJ DEX-focused L1 blockchain continues to build foundation for DeFi primitives

🥷
@Injective_
brings lightning fast speeds and the lowest fees shaping the future of finance!
Thread $INJ 🧵

In this thread we will look at ↓

🔶 What is Injective?

🔶 Injective Hub

🔶 $INJ token

🔶 Injective ecosystem

🔶 Capital raises

🔶 What is Injective?

- Built using Cosmos SDK, Injective is the first decentralized exchange-focused L1 blockchain, allowing developers to build decentralized perp swaps, futures, spot trading on it

- Incubated by Binance Labs in 2018, and has since launched several financial primitives (e.g., orderbook, derivatives, binary options) and raise a sizeable amount of capital

- Aims to create a truly free and inclusive financial system through decentralization

Why build on Injective?

Optimized for DeFi

- Provides financial primitives such as a fully decentralized order book to allow devs to create mainstream dApps

- E.g., Apps can leverage the order book to launch exchanges, prediction markets and various other on-chain strategies

Interoperability and compatibility

- Injective is natively interoperable across several sovereign blockchain networks while also being IBC-enabled

- Token launches/ transactions have a greater reach to multiple networks from the cross-chain support

Build dApps using CosmWasm

- Dev can launch their own smart contract powered apps on #Inj

- integration, migration of smart contracts that work on other chains supporting CosmWasm
Intuitive developer experience

- Devs can utilize flexible environments powered by Rust & Golang

🔶 Injective Hub

🔵 Wallet

- There are several wallets supported on Injective that users can choose to use, such as Ethereum native wallets or Cosmos native wallets

- This helps to facilitate the ease of onboarding for the native users of the respective blockchains

🔵 Bridge

- Users can use this cross-chain bridge for fast, low cost and secure asset bridging into and out of Injective

- The Injective bridge supports Wormhole, Peggy, IBC, and Axelar

- E.g. of supported blockchains are Axelar, Ethereum, Cosmos, Moonbeam, Persistence, Solana

🔵 Staking

- Users can stake their $INJ tokens to validators, to help keep the Injective network secure and earn yield

- Staking rewards is currently at 16.73% APR

- There are different % of commission yields, voting power, and uptime for the various validators available

🔵 Governance

- $INJ token holders can also take part in on-chain governance activities such as proposing and voting to steer the direction of the protocol

- The min. deposit required is 500 $INJ, and the voting period happens over 4 days

🔵 Insurance funds

- To ensure that the derivatives trading has a safety net, there are insurance funds set up for the trading pairs, such as BTC/USDT, ETH/USDT and so on

- Any user can create an insurance fund for the derivative asset, and become an underwriter by adding funds

🔵 Auction

- 60% of exchange fees every week are burnt through an auction process

- Community members can use $INJ to bid for the basket of trading fees collected during the week and the winner receives the full basket of assets w the bid amt. burnt, causing a supply deflation

🔶 $INJ token

- $INJ native token / utility cases
-PoS security
-Governance
-dApp incentive
-value accrual
-collateral backing

- Initial supply of 100M $INJ, w a target inflation of 7% that will decrease over time to 2%

- Deflationary mechanism from token auction & burn

🔵 Proof-of-Stake security

- Users can stake and delegate their $INJ tokens to validators to help secure the Injective network

🔵 Governance

- $INJ token holders have governance rights and can participate in proposing and voting of governance proposals

- Some aspects of governance includes:

· Auction Module Parameters
· Insurance Module Parameters
· Software upgrades
· Cosmos-SDK module parameters

🔵 Exchange dApps incentive

- There is a global min. trading fee for the Injective exchange protocol

- Exchange dApps who originate orders into the shared orderbook are rewarded w a portion of the trading fee arising from orders that they source

🔵 Exchange fee value accrual

- 60% of weekly exchange fees are auctioned

- During the auction, bidders can use $INJ to bid to win and receive the trading fees, and the bid amt. is burnt

- Over time, a high burn rate could cause a strong token deflation

🔵 Collateral backing for derivatives

- $INJ can be used as margin and collateral for Injective’s derivatives market

- $INJ can also be staked in the insurance pool which will reward stakers for their locked tokens

🔶 Injective ecosystem

- Injective established web3 financial ecosystem, consisting of blockchains, protocols in areas of data, metaverse, stablecoins..

- Injective meant for DeFi, integrations:
Exchanges, institutions, VCs:
-Binance
-Coinbase
-Gate Labs
-IDG Capital
etc

How can you participate in the ecosystem?

Individuals:
· Create an injective wallet
· Obtain $INJ
· Explore the Injective Hub
· Bridge assets to #Inj network & use dApps

Devs:
· Read the dev docs
· Collaborate on the Injective GitHub
· Join the dev chat
· Explore #Inj ecosystem

Capturing institutions

- Injective’s core infrastructure caters to institutional requirements with transparent reporting, instant settlement, lowest fees, deep liquidity, multi-asset support and institutional-grade security

With Injective, institutions can:

· Build enterprise dApps
· Access institutional products
· Obtain an array of incentives
· Utilize permissioned gateways